Questions

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).

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

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