3 ms·
BOE scenarios. For simplicity, I assume you earn $100/hour. So the deal offered is #100000 for 5% of the company. That suggests a $2,000,000 valuation of the
by drallison 16y ago
BOE scenarios. For simplicity, I assume you earn $100/hour. So the deal offered is #100000 for 5% of the company. That suggests a $2,000,000 valuation of the venture at the present time. Is that reasonable? Would you invest $100000 of your own money in the venture? If you were to put your own money into the venture, what kind of return would you expect in a year? five years? ten years?
What is the vesting schedule? What is the actual cost to you of the stock, that is, what is the current value? What is the cash-out strategy? Are you OK with all your compensation being in stock for which there is no market? Has the company been funded? What about dilution of your share by future investors? What happens to you after the six months is up? Are you critical to the success of the venture? Who owns whatever intellectual property you generate in the course of your work with the venture? How do you participate in the upside if the company is a huge success? What happens it the venture fails? what if it just ends up as the living dead, surviving but not prospering?