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If cash is king, and they are putting real money in, then ask how much. They're saying their cash is worth 55% of the equity (assuming the 15% sweat equity is f
by HWR_14 5y ago
If cash is king, and they are putting real money in, then ask how much. They're saying their cash is worth 55% of the equity (assuming the 15% sweat equity is for each cofounder). Is it a couple of thousand or have they put hundreds of thousands in company accounts? Are you being offered a chance to match the contribution at the same valuation? Are they committing to funds going forward without expecting more equity, or are those "planned financial contributions" a way of diluting you right off the bat?