No one says it's fair but you. Would a bank or SBA loan be approved? If not, I'd walk.
I've been offered an opportunity to invest in an expansion/start up. A local business owner currently owns 2 successful small coffee shop/bakery's and wants to open a drive through coffee shop on a property he owns. Let's assume for sake of argument that the zoning and county will allow it as that's part of the deal before I invest. He's asking for $30k in startup funds for this venture and is offering me a 10% equity stake in the company. Is this a reasonable percentage when the $30k will probably cover 100% of the startup's expenses?