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If you didn't have a document that says they will invest X amount under Y conditions, you did not have an offer. It is not unusual in business for people to mak
by rogerkirkness 4y ago
If you didn't have a document that says they will invest X amount under Y conditions, you did not have an offer. It is not unusual in business for people to make a conditional verbal indication of feedback, such as that you need to make more progress in X area before they will invest.
From the sounds of it, people are offering to invest up to $2.5M in a consumer company with no users based on a deck and MVP? You should take the money, that sounds generous. If someone backed out of closing a signed share purchase agreement, talk to a lawyer. This just sounds like a hard business lesson.
- nomadpass 4y agoHi Roger, do you know any investors who you had a good experience with? The 2.5m were not founder friendly, it would have diluted me to over 20%. I am looking for something along the lines of 1.5m-2m for 15-20% of the company.
- mtmail 4y agoOut of the gate, a website with no users, is going to be valued 10 million USD?
- nomadpass 4y agoI didn't decide on the valuation, it was pre established. I thought the norm was 7% for 500K, and I assumed that was kind of the standard in the pre-seed world, so it makes sense for seed rounds to be on average 2 million for 10-20% of equity dilution.