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So far it sounded like a fair deal, considering we didn’t yet have a productdeveloped – only a pitch deck, a business plan, a fleshed-out idea, and some user interface (UI) designs of what we thought our online product would look like. The deal we made with him was he’d get 33.3%
Examples of housekeeping include the following list, though not every item will appear every time: Finance: Cash out date, burn rate, 409A valuation, captable, common/preferred stock dashboard. Even if there’s some kind of product in the market during the first round of financing, it’s probably to be unproven.
Selecting value-added angel investors and advisors can also help with the camaraderie issue, as they can provide advice and counsel during the solitary period of hard-core coding and productdevelopment. A full-time business partner is definitely not required at this point in the company's life.
Your CapTable is something that deserves constant care and attention. Messy captables can come back to haunt you when you do a financing or sell the company. Your Product Plan must fit into context of your overall business mission. Keep the valuations consistent with company progress.
In addition, I’ve noted a few multi-product lending firms, e.g., Kapitus and United Capital Source , which provide RBI as one of many structural options to companies seeking capital. . We have a special program if you are pre-seed and need productdevelopment. Limited amount of existing debt and a clean captable”.
Hiring, org structure, productdevelopment philosophies and so on. Who will hold the accountable to building something they’re proud of but remember we sit on the captable, not the org chart. . “Horizontal Expertise” – We see lots of startups, we’ve built and run large teams.
Ideally, the economics of a development investment look like those of a cash investment; typically, a seed investor will get no more than about 20% of a company for his capital. Second, the company must eventually own the productdevelopment and maintenance functions in-house.
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