[djsamson]

I'm starting a venture capital firm with a few people. We're going to pool our money and resources together to do two things:

- Start new businesses (primarily internet companies)
- Invest in existing businesses

My question is, how do we make our profit? For example:

Say the firm buys 40% of a company - the original owner reserves his 60%. The company begins to prosper and grows a large profit. How much money do the shareholders receive?

If there's ten share holders of the firm and we all own an equal amount, who decides how much money goes to all the shareholders?

My assumption was that we would make an agreement with the company that --% of all sales went to the shareholders each -- days. That would mean if $20,000 went to the firm and ten people were in the firm, every member would recieve $2,000 for that period of time.

Thank you for your help.