3 ms·

> A tech company which only exists as a napkin held between two hungry young men with no asset other than a gleam in their eye gets a notional value of $250k+

• patio11 13y ago
  There's a market between sellers of equity in early stage companies and buyers of equity in early stage companies, and sellers in that market largely will not transact with you below $250k, because they'll have better offers for their scarce product. (This assumes, naturally, that the founders appear to have a credible chance of bringing a technology product to market.)
  • bennyg 13y ago
    I have a great product, have quite a few people that use it, and would kill to have $250k in venture money to take it to the next level. I'm just in Alabama - and that's why $250k seems like such a high number for a napkin idea (I can't tell you how many napkin ideas I have). $250k is a TON of money if you don't need to hire anybody.
    • patio11 13y ago
      You don't get $250k in exchange for the napkin. You'll be able to possibly convince someone to pay $25k for ~9% of the napkin, contingent on you devoting the next months/years of your life to exploring napkin-like directions until it either burns or blossoms. (If you already have a product with revenue/traction, there's plenty of reasons to counsel AGAINST taking the money at those terms, by the way. Or any terms, for that matter.)