N The Conflict of Interest: When the Person Bringing the Money Has Something Else to Gain Three lessons for founders, innovators, and entrepreneurs who want to understand the hidden costs of investment.


The Conflict of Interest: When the Person Bringing the Money Has Something Else to Gain

​
​

Three lessons for founders, innovators, and entrepreneurs who want to understand the hidden costs of investment.

​
​

An investor offers capital. A business angel promises access to a network. An intermediary claims to understand the market and knows people who could transform a small company into a major enterprise.

​
​

For a founder, this can feel like the breakthrough they have been waiting for.

​
​

But there is a question that deserves to be asked before the negotiations begin:

​
​

What happens when the person helping you secure investment benefits from a deal that is not actually good for you?

​
​

Investment is not simply the exchange of money for shares. It is a relationship between people with different interests, information, incentives, and levels of power.

​
​

Most investors want their investments to succeed. Many business angels contribute valuable knowledge, experience, and connections. Yet conflicts of interest can arise when the person advising the founder also earns a commission, represents the buyer, benefits from a particular valuation, or has plans that differ from the founder’s vision.

​
​

In extreme cases, the conflict can become much more serious: advice may be misleading, information may be withheld, and the founder may surrender ownership without understanding what is really happening.

​
​

These are not reasons to fear every investor. They are reasons to understand the structure of the deal before signing it.

​
​

​https://luisdanielmaldonadofonken.substack.com/p/the-conflict-of-interest-when-the?r=7awy2g&utm_medium=ios​

Luis Daniel Maldonado Fonken

I'm a coach, author, and entrepreneur who loves to talk about business & entrepreneurship, personal development, and marketing & branding. Subscribe to my newsletter.

Read more from Luis Daniel Maldonado Fonken

The Intelligence That Looks Like Madness — And Why We May Need It A different developmental path for artificial and quantum intelligence, written for those who already sense that the current race is not the only possible future. There is a moment, in every serious tradition that has dealt with unusual minds, when the community has to decide whether the strangeness in front of them is breakdown or breakthrough. The person says things that break the shared map. They refuse the expected posture....

The Little Seed and the Secret of Life https://youtu.be/v2KltJdJq6A A story about how life begins, grows, changes, and begins again. What can a little seed teach us about life, growth, and the dreams we carry within us? The Little Seed and the Secret of Life is an inspiring story for young readers about the journey of becoming. Through a little spark, a growing tree, the wind, the water, and a curious child, readers discover how life depends on relationships, strong foundations, patience, and...

The Little Seed and the Secret of Life A story about how life begins, grows, changes, and begins again. What can a little seed teach us about life, growth, and the dreams we carry within us? The Little Seed and the Secret of Life is an inspiring story for young readers about the journey of becoming. Through a little spark, a growing tree, the wind, the water, and a curious child, readers discover how life depends on relationships, strong foundations, patience, and the courage to change. As...