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200k for 50%? That's crazy. The professor was right on so many levels. That 200K wouldn't last three to four months. Rent, salaries, hardware, etc. That
by jawngee 19y ago
200k for 50%? That's crazy.
The professor was right on so many levels. That 200K wouldn't last three to four months. Rent, salaries, hardware, etc.
That said, the professor was slightly insulting, but I don't think his position was wrong at all.
- thisisnotmyname 19y agoI agree. What is more, the professor's show in the board room was so good that it made for highly entertaining TV. If you're going to turn down a $200k, you might as well get some free publicity out of it.
- webwright 19y agoIs it crazy? YC offers $20k for 2-10%... It utterly depends on what stage the company is in. If it's a few guys and a prototype, $200k of seed money for 50% isn't necessarily a lousy deal. And, for the record, it could last quite a while. 3-5 young guys making rice-and-beans money, cheap rent, 2-3 servers at ServerBeach... The "professor" was insulting and controlling-- he raised the VCs' hackles, which isn't going to move the meeting in the right direction. If he had a problem with the valuation, he should have raised the concern before they'd issued the check. That's bad faith negotiating.