Hi everyone,

First post so I'll try to keep it as short as possible!

I have been working on a proposal to set up a private fund invested in by the public, but that has a guarantee on the returns from the government. Specifically for startups as they are having a tough time getting finance right now. The company would pay back the loan (without interest), plus 8% return to investors should the company be profitable. They would not need collateral, or a good credit rating to get the loan, just a solid business plan and attitude.

If I got such a proposal through would you as entrepreneurs be ok with giving up 25% of your company? - to be owned by the management team of the fund + public investors? Once the loan has been repaid with the guaranteed return in full, the equity stake goes down to 17%. I am an entrepreneur myself, and think its a pretty good deal, but a few people I've discussed it with say they would not give up so much equity.

Would love to hear some further opinions....I going to be doing this in Ireland.