I’m considering looking for investment in bout 12 months time for an online venture i have started, very early days yet. I have been doing some research as i have not took investment before (previously borrowed to fund my startup). It is quite a complicated subject and a decision not to be taken lightly.

I read today that when Dame Anita Roddick needed money to open her second Body Shop, the bank had refused to lend her the money so she borrowed £4,000 of her friend Ian McGlinn, in exchange for a half-share of the company. If Anita had been able to persuade that bank to lend her the £4,000 she would have been able to repay it back over time and in the end save herself quite a bit of dosh as when she sold the Body Shop business last year for £652 million, McGlinn who held a 22.4% share of the business took £146 million!

I have read loads of strories of people giving away huge shares in the business because they could not get alternative funding and in the end missing out when they came to sell. Will feature further stories over the coming weeks ….

Finance | RSS 2.0 | Comment it , or trackback this post.