The 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) eva

The 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.