Login or Sign Up
  1. Login
  2. Search
Ask a New Question

I'm watching shark tank and they keep going on about royalty. They'll say something along the lines of:

I'll give you 500k for 30% equity and 10% royalty.

I don't really understand all this business stuff but what I think is going on it that they're giving 500k upfront for 30% of the company. The royalty I don't really understand. I'm thinking for every dollar made, they want 10 cents. Could someone clarify this for me? Thanks.

Question ID
524823

Created
April 3, 2011 9:33pm UTC

Rating
0

URL
https://questions.llc/questions/524823

Answers
3

Views
509

3 answers

  1. Yes, that's essentially what a royalty is.

    http://www.investorwords.com/4330/royalty.html

    I'm most familiar with the royalties paid to authors of published books. A publisher pays an author a certain percentage of the revenues from the books that are sold.

    Answer ID
    524825

    Created
    April 3, 2011 9:36pm UTC

    Rating
    0

    URL

  2. Thanks a bunch, Ms. Sue.

    Answer ID
    524827

    Created
    April 3, 2011 9:46pm UTC

    Rating
    0

    URL

  3. You're welcome, Lena.

    Answer ID
    524828

    Created
    April 3, 2011 9:47pm UTC

    Rating
    0

    URL

Answer this Question