I have a meeting for a potential seed investor. I have been working on a big idea for the last 2 years. Proto- bus plan- marketing plan, website is done. The idea has the potential to become very big very quickly. I am asking for $70,000. I was thinking to give him 10% of the company until he gets 20 times investment and then 1% of the company. Or should I set up a promissory note ? What would be the best set up for it? What if he wants stock?
A promissory note is not the proper vehicle to use for what you're proposing - and a 20x return is HUGE....way too much!
You'd be amazed at how many times you don't actually need "money" but rather ingenuity to start a business, and also there are a number of grants available from various sources and/or bartering opportunities that can be structured with existing business's for what you need.
I'd be happy to help you explore options - please feel free to call upon me. I've started many businesses of my own over the last four decades, and spent many years assisting others after that - when I was in commercial lending.
It sounds to me like you've got the desire, and you've put some time in - quantifying that is necessary so that you appear to have some skin in the game may prove very useful to you as it will likely improve your chances of persuasion.
Answered 6 years ago
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