3 ms·
I guess I am curious about what range of equity one might feel comfortable asking for a $20k-$50k check.
by inputcoffee 10y ago
I guess I am curious about what range of equity one might feel comfortable asking for a $20k-$50k check.
- graycat 10y agoThe equity investor will likely want at least 10% of the company. So the $50,000 check would be for a company with a post money (after the check is cashed) evaluation of $500,000. If the company really looks like it has a much better than average shot at $500 million, then it's an even bet if the company has only 1 chance in 1000 and a money maker if a better chance than that. But that little bit of arithmetic is well beyond nearly all equity investors.