I have a pre-revenue startup, valued around 2M (self assessed valuation).
An investor (that already has his own company in the field) wants to buy the 51% of the startup, but i don’t think this is good for me.
I cannot withstand two jobs so i actually want this to go on. The startup won’t live without me as a Cto (i am the cto) because of the particular knowhow and history. The other members will keep having two jobs, for me is just impossible…
He still didn’t come with a valuation, but he said that want to delay the payments in the next months… he also wants us to help him with his current company, becoming its r&d department and make our business as startup.
I asked if i will be hired by his company, but he told me that he will just invest in the startup and what we do with the money is up to us… but of course if i am hired by my startup, lots of cash flow will be negative just for my salary and i cannot afford to be unpaid.
What should i do? How can i have better conditions? What should i look at? I know maybe you will need other details, please ask.
Thank you for answers
Bro don’t do it. I had to reread this a few times to decipher the chaos
- You’ll be stretched thin between your two jobs
-51% = Not really your start up but his aka your new boss
-If the start up will fail if you leave, it means you shouldn’t part with 51% if you are a key reason why it functions
-How successful is his current company? Why no valuation or delay in payment?
- Usually start up founders don’t take a salary or take a very smallish salary in order to grow the company, is there a reason why you are paying yourself so much it will run the company in the red?
You need to get some lawyers in on this, this sounds like something that will have you on a psychologist couch if you don’t get it taken care of. It also sounds like you need to make a choice between the start up and your job because its stretching you thin
- You’ll be stretched thin between your two jobs
No i have to leave one (the one that pays me to go with the startup)
-How successful is his current company? Why no valuation or delay in payment?
We are waiting for the legal report to be sent to us
- Usually start up founders don’t take a salary or take a very smallish salary in order to grow the company, is there a reason why you are paying yourself so much it will run the company in the red?
I am 40years old, i have bills, i cannot live without a salary
-You need to get some lawyers in on this, this sounds like something that will have you on a psychologist couch if you don’t get it taken care of. It also sounds like you need to make a choice between the start up and your job because its stretching you thin
Yes, i have to choose and of course i would choose the startup over my current job, but i don’t have nothing solid to help me decide now and I don’t know if things are going well with this acquisition