Whatever is the norm in one area of one country rarely translates cleanly to other areas, especially when underlying business practices and cultures are very different.
Having said that, in business negotiations there are no rules. Each party needs to skillfully position and ask for what is in their best interests. If your friend doesn't like the terms and conditions proposed by the VCs, then it is for him to come up with a strong counter-offer and so it goes on.
For any business one of the many choices is to grow organically and retain full ownership. The faster you want to grow, the more control you give away. That is simply the nature of investors maximizing for their own gain.
Comments
Whatever is the norm in one area of one country rarely translates cleanly to other areas, especially when underlying business practices and cultures are very different.
Having said that, in business negotiations there are no rules. Each party needs to skillfully position and ask for what is in their best interests. If your friend doesn't like the terms and conditions proposed by the VCs, then it is for him to come up with a strong counter-offer and so it goes on.
For any business one of the many choices is to grow organically and retain full ownership. The faster you want to grow, the more control you give away. That is simply the nature of investors maximizing for their own gain.