Late Stage Investments

My partners and I have built our company from an $11K company to a $1.2M company in 5 years. We have an investor who would like to put $500K into the company to help us get it to the "next level". My question is, can we take some of that investment off the top as bonuses for us or does it all go back into the company?

Deopends. Is he investing into the company? Or buying existing shares from you?

If he does the later, why does he think that takes the company to the "next level"? At the end, the copany stays the same and you get the money.

In the first case (new shares issued from the company) the word for taking this money out of the company is investment fraud.

Well, it all really just depends on what you negotiate with him.

However, $500,000 is not a lot of money in most cases. If you took out anything worthwhile, there would be nothing left to "take it to the next level". I suppose you could maybe take $10,000 or $15,000 as a sort of performance bonus payment among the partners, but that hardly seems worthwhile.