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Simple Agreement For Future Equity
Description
On today’s show we are talking about deal structure. Some of the financing vehicles that are increasingly common in real estate had their roots on Wall Street. Others had their roots in the tech environment of Silicon Valley.
When investors want to participate in a startup business that will certainly evolve over time, how do you decide what is fair to both the investor and the management team? What is the monetary value of the investment, pre-money, and post money? How do you know what percentage of the business to sell to investors?
The value created by the business has several elements. The seed capital is part of it. But so too is the creativity and resourcefulness of the team. You won’t achieve business success, or any investment returns without both.
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Host: Victor Menasce
email: podcast@victorjm.com