What's better 30k from 1 partner or 30k from 3 partners ?

3 Replies

What's better 30k from 1 partner or 30k from 3 partners (with each partner giving me 10k). Which one is riskier?

Assuming all the people are equally easy/difficult to deal with, then just having one person in the deal with you would make it easier from a relationship/equity management standpoint imo. 

Of course, if that one person will be difficult to deal with and the other three are easier to work with or bring some other value to the table besides money, then I'd go with the 3 partners. 

@Account Closed

If you are trying to herd cats around your house or yard, would it be easier to herd one cat or three cats?

More partners means more people to disagree and try to assert control over the situation. Inevitably someone will need their money back early or they will want you to use their uncle Chuck for the electrical work and then get pissed off when you use a legitimate licensed electrician.

In your partners, you need to qualify them as well. You do NOT want to take $10k from someone who only has $20k. Make sure you are dealing with real investors who understand the real risk of what they are doing.

All things being equal, probably 1 person. Depends on how this entire deal/partnership is structured, though. If everyone is bringing something to the table, maybe 3 partners is better. If it's just for money and money alone, I think 1 person is easier.