In this business environment, a “corporate buyer” will be looking at your net income and value you based on a multiple of such. For example if the company generated $500,000 but only earned $75,000, you may be looking at a value of $200-$300,000 from a corporate buyer. It also depends on whether ...
I know this moment all too well. I've been on both sides of this one, and let me say - it's not as scary as you think. If the new hire comes to the table with more to offer than previous hires, then it shouldn't be something you have to "sell". If you think you need to "sell" this new hire to yo...
If they are offering equity as your payment then I'm surprised that they didn't come with a number. Or maybe they will. It's hard to give a firm answer because it all depends on how much money the two founders are investing on their own. If you say you'll invest equal portions then you can ask fo...
Before we dive into the equity,salary and such. Motivation and retention begins with the CEO. Ask yourself what is the culture of the company? If you don't know anything about culture then start with the basics: 1. Do you value employee opinions? Do you ask for others opinions? 2. Do you encour...
Hello! This is a very good question, my name is Humberto Valle, and I'm the founder of www.Unthink.me a small globally known inbound marketing agency. We have helped many tech-related companies such as Software Developers who work on equity as well as traditional payments. For our marketing agenc...
Some questions you'll want to answer before moving ahead: How strongly do you believe this idea can become a successful product? Why do you think they approached you? How comfortable do you feel running a company owned by someone else? What happened in your previous CEO role? What confidence...
Typical pre-seed (100-500k) is 5-15% Seed (500k-2M) is up to 25% And over depends. The "potential of the next FB...." is just that, a potential. Don't fight over equity early but make sure you never give up more than 15%, don't offer board seats too early and no "right of first refusal" or "ri...
Hey there! This doesn't seem to meet the definition of a partnership, especially if all of the funding is coming from you. You certainly want to demonstrate that you value his expertise and contributions but it really sounds like you are bringing your first employee (if you are based in the U.S. ...
1. Before you dive into building out marketplace software you might find it easier to quickly test your MVP using a SaaS product like https://near-me.com/. I am NOT affiliated with them. But in a previous startup explored the marketplace concept. Spend 12K for a year on a SaaS product then spendi...
I have raised money for companies ranging from startups to Fortune 500 companies, as a founder, an independent director and as an agent. The main salient difference is not so much deferring valuation (unless you give the convertible buyers a ratchet) as it is the trade off of who gets what in the...