Could a investor or venture capitalist do this? 10 Points.?

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• company stock definition
• making money in the stock market
• make money in the stock market
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• paid up capital
• what is equity

I know that sometimes an investor will request a royalty paid from the sale of a product or service until his capital is returned in an investment. But could an investor ask for a interest payment as a percent (%) of the capital they are investing? Instead of asking for a royalty.


For example, an investor invests 100,000 dollars in to a Company & in return receives a certain amount of equity in the company. However, the business is risky & wants the entrepreneur to service their capital to make sure they see a return on their investment. So instead of asking for a royalty, they ask for an interest payment based on the money they are putting in to the Business, sort of like a loan. So 100,000 x a certain percent (lets say 7% interest) paid every month until the initial 100,000 is returned. So $100,000 x 7% interest = 7,000 a month paid until the investors money (100,000) is returned, then the investor has their money back & owns equity in the company.


Could an investor do that? Or is it unlikely?

Additional Details

Sorry about the few grammar mistakes I made, I hope that makes sense.

Could a investor or venture capitalist do this? 10 Points.?