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12 points by wensing 7 years ago · 4 comments

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aacook 7 years ago

I created this unofficial Google Doc with all of the questions if you're like me and prefer drafting outside your web browser. (File > Make a copy.) https://docs.google.com/document/d/11ZoPzFFxQ_e_Eytwm3hqdcP1...

tamersalama 7 years ago

> 8~15% Equity + Dividends.

Can anyone comment on how favorable those are?

  • novaleaf 7 years ago

    Disclaimer: I haven't taken any funding, and I'm outside of the SV sphere so probably I am wrong, but I do run a SaaS making sub $10k MRR so I am thinking of applying....

    I think "It depends". If you have an unproven product, a $120k investment + mentorship in exchange for 15% sounds pretty good to me.

    My situation makes the monetary investment a lot less important. For me the value would mostly be in how applicable the mentorship would be in my situation. Is 8% worth it? Maybe, maybe not. I think I'll end up waiting on the next round before applying. (and try to fix my obvious defects in the meantime)

  • juliusmusseau 7 years ago

    Sounds like it behaves a bit like a 1x participating preferred but without any special voting rights. (Presumably they vote their shares alongside the common voting shares?)

    I think it strikes a good balance between founder-friendly and investor-friendly.

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