Have a look at goodwill (http://en.wikipedia.org/wiki/Goodwill_(accounting)* http://en.wikipedia.org/wiki/Goodwill_(accounting)*). Have there been any investme

Have a look at goodwill (http://en.wikipedia.org/wiki/Goodwill_(accounting)* http://en.wikipedia.org/wiki/Goodwill_(accounting)*). Have there been any investments in your new venture? Anything that could help set a valuation? If you wanted to give* them equity, understand that it is an arms-length transaction on your balance sheet, not a freebie. If you really want to, you could give them a 'goodwill' deal. No shares for free on top, but if they wanted to invest, they could invest on favorable (and quantifiably so) terms. While this isn't legal advice, I don't believe you have any obligation to include your previous investors at all, much less provide them with favorable (or one-sided) investing terms, unless of course there were special terms dictated in whatever contract you previously had with them. If that is the case, definitely get in touch with an appropriate lawyer to keep yourself protected.