Seeds of doubt regarding capital pitches for equity

[Barbra Thebenyane]

A bigfish investor has approached our project with a deal that seems too good to be true. What risks are involved in granting the investor too much equity in the end product? Could there be an ulterior motive involved?

[Hank Wu]

I am sure the bigfish investor got where he is today by smart investing. You never want to give away equity, but if it's the only option on the table and you are desperate for capital, you may wish to bite the bullet and plant the seeds of a new professional relationship by trading equity.