How much $ would you ask from a potential co-founder?
I have a software that I have been working on and selling it since 2004. So far spent over $2M on it. I am the solo founder of an Incorporation and I have a friend that can become a co-founder. How much $ would u ask from him?
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How would they be a co-founder if you have been working on it for 17 years?
That's why he'll pay.
So the question is more how much are the shares of my company worth.
Also the 2m doesn't matter. It is how much is the market willing to pay for it.
I agree. Hence my question here. :)
charge a lot, you are selling something hard to find, linkedin profile "co-founder of X" and X is 17 years old.
That's what I decided to do. Thank you for your reply.
Without specifics we can't really give you a number.
What you have spent so far is the sunk cost. It has no bearing on the valuation of your business. Its current valuation is based on current revenue, profit, and assets. It would hard to come up with a valuation by you and your friend. Unlikely you are going to agree on it. Your CPA can help with valuations.
As others have pointed out your friend would be a shareholder and partner in the business, not a cofounder.
Thank you for your feedback. Yes I fully understood it now.
I think this depends on the amount of stock/equity they are getting in the company as well as the value of the company. Have done an analysis to figure out what you think your company is worth? What percent of the company are they trying to buy?
Like others pointed out, I am not sure if this person is really a cofounder. I think they are either an investor if they are giving you money to own part of the company, or an employee if you are giving them equity to work for you.
that is not a co-founder that is someone purchasing shares in your company, that purchase may be with cash or value to the company or both, just calculate the worth of the company and then the value of the shares
keep in mind, even you sinking 2 billion dollars in the company in the past 2 years dos not make the company worth 2 billion, the company assets (actual physicals objects, contracts with customers, brand value and realistic sales projections for the next year or two) are the company value.
Thank you for your reply.
This comment was deleted a year ago.
Thank you for your reply.