If I am instrumental in helping my company obtain funding, what should I ask for -- cash or equity?

The company I work for is seeking investment of $10 million and has had offers from investors for $3 million and $5 million, but that would just buy time -- not get the job done.

I have a close friend who is a deal broker and he has an investor (one of the few still doing deals in this uncertain economy) with very deep pockets who has interest in the Company.

My questions is this: I originally made it known I want to get something out of this if the funding goes through. Now my management wants specifics from me. I'm not sure what is appropriate here -- should I seek cash, equity, a combination? And how much?

Although I believe I can get similar employment and compensation closeby, I believe the Company will be quite successful if it receives funding so I don't want to "burn a bridge" so to speak by squeezing every ounce of blood from them, and then only contractually until/unless a funding actually occurs. (40 employees)

Any suggestions would be greratly appreciated

You should get a percentage of the Broker's commission (a "finder's fee") for bringing the deal to him. I don't see where your company owes you anything, as you are not really making any money for them.

The real wealth will be found in equity. Equity in a good company grows. Could you find a better investment if you took cash?

Tags

　　Fidelity Investment 　　Fidelity Fund 　　Exchange Traded Funds 　　Equity Investment 　　E-gold 　　Ebullion 　　Easy Money 　　Easy Investing

Related information

Long-term financing supports?

If your time horizon is long-term, you are probably better off using stocks. The question is worded in a confusing way, but intuitively I would think the answer should be d (equity investment). ...

How do you buy a second home when you have no savings?

What I've heard done in situations like this is that when you purchase the foreclosure in FL, take out a larger home loan from the bank than just the cost of the house (you can usually claim t...

How do i start a hedge fund?

First of all. DO not give any firm that amount of money or even 1/10 of that. Find out the regulatory guidelines in your area (it is based on region, country, etc). Don't trust anyone w...

What safe investment instruments are out there that yield 7-8% without fully accepting all risk with equities?

You can't get a return higher than the risk free rate without accepting some risk. Focus on what you can control(transaction costs, taxes)

...

Investments - Property or managed fund? or put extra $100 wk into mortgage. Have $28000 equity in home.?

If you are going to use the equity in your home, you would probably just be better off selling the home and renting (bascially what you will be doing). Depending on your mortgage rate, if it is fi...

Will I be able to take out a home equity line of credit when I only control 1/3 of the interest in my house?

All vested owners have to sign an acknowledgement giving you permission to take out a lien on the property. They would not have to be on the hook as borrowers, but they do have to grant the permis...

Where should I go to invest in equity index or no-load mutual funds?

You should invest in a diversified mix of stocks, bonds, and money market funds. You want to buy a diversified portfolio of stocks as individual stocks are too risky. Most folks have a dificult ti...

Investment Allocation for 2008 - Need Advice?

Well you did well timing it but most investors don't fare that well... I would move into stocks 100% at this time if I were you, and I did this for my wife's 401k an hour ago. Up u...