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Structure it as an X for Y thing for a % of equity vs how much the bring in. Does 5% cash comp mean they’re going to get 5% of the raise amount? No VC would be
by urcturpurs 9mo ago
Structure it as an X for Y thing for a % of equity vs how much the bring in.
Does 5% cash comp mean they’re going to get 5% of the raise amount? No VC would be ok with 5% of their investment going str8 to a middleman - if they find out.
That’s coming out to maybe 2-3 months of your runway gone immediately.
Beyond that the CEO of the startup is responsible for raising capital - you must build that skills from the beginning.
(Raising $2m on a $10m cap safe is not too hard if you’re serious about it and have some interesting insight)
- ebitda_ai 9mo agoCan you emphasize "Structure it as an X for Y thing for a % of equity vs how much they bring in." Not sure if I follow. Assuming he does the entire round, then I'll end up with $4.75 mil on $19 mil "after fees." If I counter him with 5% cash + up to 1.5% equity, that would put it at $4.75 on $22 mil val "after fees", would that make sense?