Questions

How do you structure that, so that investors can have the option to invest in only one or two particular products, and not just in the corporation as a whole?

It's best to keep everything in a single company to start with. Before going further with my answer, I'm compelled to tell you that launching multiple products *rarely* works and unless you have very significant prior success, most investors will take interpret diversification as a very negative signal.

So just wanted to provide you that warning. You should do nothing in the early stage to your corporate structure to optimize to sell or spinoff what the Company develops. The reason for this is that it incurs legal expense prematurely and often limits your choices instead of facilitating the desired optionality.

Investors almost always want "the whole hog" and also want to back a whole team focused on making a single product or service as big as it can get.

Let an investor or buyer drive a spin out discussion, not the other way around.

Happy to talk in more detail in a call.


Answered 10 years ago

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