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March 6, 2015

Homework Help: Business - royalty

Posted by Lena on Sunday, April 3, 2011 at 5:33pm.

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.

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