Takeover or investment?
Hello all,
Got a question that I understand is incredibly basic but never really got my head round.
If a new company receives equity investment (i.e 100k for 10%) does this 100k go into the cash flow or does the owner get it?
What I'm trying to understand is at what point does the owner selling the shares get the money rather than it going into the company? (Think I've deceived by watching this show about startups in Silicon Valley?)
Any help would be appreciated.