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Business Law Case

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Having in regard all the information that is given in the Case Study, what is, in your opinion, the best Investor/Partner choice for NatuRi Corporation? Is it the Angel Investor, the Strategic Investor, Waltham Partners or Westlake Partners? Please justify your answers. In order to make a comprehensive review, we will discuss each investor/partner choice separately on its positive and negative aspects. Angel Investor The angel investor is a wealthy individual who is willing to make a personal investment in their venture. An advantage of this investor is that Kartik is familiar with him, as he has done some consulting work for him. The individual investor is willing to put up $1,000,000. A disadvantage of this angel investor is that, as …show more content…

This is not preferable for NatuRi as there can be negative consequences for them. For example, if NatuRi flourishes in the next couple of months, its value will increase significantly. This will result in Waltham Partners converting the note into the 12,5% of shares. On the other hand, if NatuRi is not performing well and its value is decreasing, Waltham will not do the same and does not exercise the option. These two scenarios are both detrimental for NatuRi, as Waltham Partners will always make the most profitable choice for themselves, which will harm NatuRi. NatuRi should therefore negotiate about this matter and not just grant Waltham Partners this option. They could try to change this by having Waltham Partners choose between the two options before the closing date. An even better solution for NatuRi would be that they have the right to choose for Waltham Partners themselves. This is not realistic however, as Waltham Partners would not agree as they would have the same problem as NatuRi. Option to invest In this section it is stated that NatuRi grants Waltham Partners the right to invest at their option. NatuRi should negotiate that the option for Waltham Partners to invest is their own call, as this new investment (Series A Financing) makes some huge changes in NatuRi’s company structure. By simply granting Waltham Partners with the right to invest

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