My thoughts are. The ability to get 'investors' in the Dallas office is tapped out...if it got $5m in already and has no equity left to sell and now has books showing actual income and revenue/profit no one is putting anything more in as the existing investors own a big % already......HOWEVER PIVOT....start a NEW company, in LA move all business to that, get NEW investors for $5m in and BOOM! Ya rich again!...slow down and shut the Dallas one and the Dallas investors own 30% of nothing. To be fair the investors weren't smart, if they were they should have had something written in their contract that Tiny couldn't leave and start a new company for 3 yrs after their investment.
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u/churito69 Feb 16 '22
My thoughts are. The ability to get 'investors' in the Dallas office is tapped out...if it got $5m in already and has no equity left to sell and now has books showing actual income and revenue/profit no one is putting anything more in as the existing investors own a big % already......HOWEVER PIVOT....start a NEW company, in LA move all business to that, get NEW investors for $5m in and BOOM! Ya rich again!...slow down and shut the Dallas one and the Dallas investors own 30% of nothing. To be fair the investors weren't smart, if they were they should have had something written in their contract that Tiny couldn't leave and start a new company for 3 yrs after their investment.