4 ms·
I use the word "sell" to imply that someone invested $100k in the business in exchange for 20% equity.
by max_ 3y ago
I use the word "sell" to imply that someone invested $100k in the business in exchange for 20% equity.
- quickthrower2 3y agoSounds like an angel round (of yore… I think YC now does $500k investment). 20% is quite a solid chunk though.
- nivertech 3y agoYou phrased your question like the founder takes 20% of their own equity off the table. That's why people responding negatively. Committed founders would invest their own money and work for free (or minimum salary), and use that $100K to pay company expenses/salaries. Investing $100K for 20% in pre-seed company is possible if it's dillutable. Take into account that proper priced rounds require lawyers. A much better aproach would be to sell SAFE.