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Anonymous

Stealth • 7m

Can anyone please explain me the royalty thing which is shown in shark tank like I'm dumb? Like, every time I see, they demany different type of royalty with different terms. Like, royalty on a revenue. Royalty on a profit. Royalty on a every goods sold etc. Plus, I don't like the idea about royalty until 'n'X of an investment amount. Like, what.??? Seriously ..??? This isn't good for founder at all. Like, you got the equity. You got the royalty until 'n'X of the investment amount and you'll get exit with profit also..!!!!

2 replies7 likes

Replies (2)

Anonymous 2

Stealth • 7m

Same bro, i hate the idea of it. Shows how much greed they have, and also how much trust they have on a company they are investing.

0 replies

Anonymous 1

Stealth • 7m

The logic behind it is to maximize short term profits for investors. All there is an incentive, for the founder to speed up sales, and overall growth of the company as after the payout, they won't have any burden, so the process of growing both for the company and the founders stay hand in hand.

0 replies

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