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Had exactly this conversation a couple of times. You are effectively asking me to invest $100k in your company. In exchange for what? My risk is even higher th
by josefrichter 2y ago
Had exactly this conversation a couple of times. You are effectively asking me to invest $100k in your company. In exchange for what?
My risk is even higher than yours, coz at 1%, I'll have no say in anything important. And I'm breaking even only once we reach 10M valuation.
- fragmede 2y agoIf all it takes is a 10M valuation, sign me up! I mean, 10M sounds like a lot, but in terms of a remotely successful SaaS company (as opposed to a side project hoping for beer money), it's not that much. That's around 500 people paying $200/month, assuming a 10x multiplier of revenue to valuation. (or 5000 paying $20/month) The problem is that there's no easy way to cash out with just a valuation and you need the $100k now to pay for whatever, not when the board says there can be a liquidity event (which may never even happen).