Finance question – due within 2 hours
In order to obtain LipLife’s original venture capital investment, the business would have to give up a certain amount of equity up front. This amount would depend on the terms of the deal agreed upon between the investor and the business. Generally, investors will ask for a percentage of ownership in exchange for their investment. For example, if an investor provides $1 million in funding then they may require 10% of ownership in return. Therefore, it is difficult to determine how much equity must be given up until all details are discussed and finalized with the investor.