Questions

Can a single company with 2 online businesses get funded and how does it affect the company valuation

Hello Prasanna, I had posted a question and thought of asking you too. If a company X has 2 portals ( www.abc.com ) & ( www.xyz.com). Can company X raise funds for both these companies, if yes how does it affect the valuation of the company esp when there would be different set of investors for both the portals ( products).

2answers

From a corporate law perspective, the money is being invested into a COMPANY, not a product or portal.

From an investor perspective, they are investing in
1. Team
2. Business

NOT in a portal or a product.

As an investor, if you're doing two completely different things with one company, I would be very wary of investing.

Typically one startup == one line of business, one product when you start. Once you cross a few million USD in revenue, you can think of more product lines.

This is more of a corporate structuring question, so a lawyer and your investor are the best people to help you with this.


Answered 7 years ago

It is advisable to separate both the portals under two distinct companies if they are different businesses, however, if they are same, you may nest one under the other and raise funds for the mother company.


Answered 4 years ago

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