Needless to say, the fear of losing unanimous control is not justified, especially when it comes to investments made by professional investors (companies or individuals whose main occupation is making investments). Investors are ready to invest in the company mainly due to great faith in the management team (founders) and their ability to achieve good profit and growth figures in the future. Thus, the role of investors after the investment remains at the level of investment control or providing general advice, relying on the fact that the other participants will provide the management of the company. Accordingly, everyone does their job.
It is important to remember that the goal of investors is to make money by making good investment decisions by investing in multiple industries and companies. Without management and other participants (or in conflict with them), such a goal cannot be achieved. Investors' role in a company is typically limited to board or board positions, which provide the opportunity to "look after" their investment, as well as share advice and contacts where they can be useful. The better the company and its management team perform, the less control and advice is needed. Therefore, I strongly advise entrepreneurs to avoid the phrase "just looking for money" when addressing potential investors, because it indicates four things:
- uncertainty about one's competence to manage the company;
- not wanting to listen to anyone else's opinion;
- a plan to "extract" money from the company by "putting" on other owners or
- misunderstanding about the investor's investment motivation.