[brezina]

Anyone with experience in funding a company through equity financing would never put their personal equity into an agreement like this. And I wouldn't fund someone who is as fiscally irresponsible with their personal finances.

Companies are much bigger than the entrepreneurs that start them. Say this woman sells 6% of her earnings to get $600k for her C corp. The C corp could literally turn around and fire her with very little consequence (except maybe some stock acceleration and severance). Then what? She has traded 6% of her future earnings and she doesn't even have a job at the company she started and limited upside in the venture she started. Super risky.

This is why we have corporations. To separate personal and corporate responsibility. Doing something like they are suggesting is as crazy as repealing the separation of church & state.

[bravura]

Interesting, I always thought of the separation between personal and corporate responsibility in just one direction. Could you elaborate?