I have so many questions .. 1) Is the 200K euro investment a loan that must be paid back at 40K/year, or is it equity investment? (or a convertible note?) 2)

I have so many questions .. 1) Is the 200K euro investment a loan that must be paid back at 40K/year, or is it equity investment? (or a convertible note?) 2) What % time is the CEO + Chairman dedicating to the company? Why is the final member getting 25% equity for being chairman? What value is the chairman bringing to justify the equity? Does the 25%-chairman provide some of that 200K? 3) How does the existing company view their CEO becoming CEO of a new company? Or him taking two people out of that project and putting into yours? How would you feel if he took people out of your company and started a 3rd company with someone else? Here's my advice: Startups are hard enough to do with people committed full-time, or 120% even. If we're talking about a scalable start-up and not a lifestyle business, if you guys will go raise again, no one will invest into a company where 2 part-time guys own 50% of the equity, where the CEO is a part-time person with another company to run. Any new investor, or customer for that matter, will require your team to be fully committed to your company - if not, why should they commit as an investor or customer? After all you are quitting your job. There are certain exceptions - some biotechs are co-founded by well known professors, or if your CEO is Steve Jobs, Elon Musk etc. As it stands this doesn't seem to have the right structure, right incentives, and right economics built-in. Try to recruit a full time co-founder who knows the industry you're targeting. If you fail to do that, perhaps that's a good indication that the idea is not amazing. After all, you're trying to convince someone to get paid for doing the idea. Soon, you'll have to convince customers to part with their money :) Also, if your idea is good, you can raise money from a seed-fund with a better structure. You can even tell those funds the story about this CEO etc. If the seed funds pass, you can ask them genuinely what they didn't like.