If someone wants to buy 5% of your equity for $30,000 that means he/she is valuing your company at $600,000.
5% of $600,000 = $30,000
Buying equity is not a loan. You don’t owe that money back. But you should have a conversation around if your new potential partner is expecting quarterly or annual distributions of profits generated.
If someone wants to buy 5% of your equity for $30,000 that means he/she is valuing your company at $600,000.
5% of $600,000 = $30,000
Buying equity is not a loan. You don’t owe that money back. But you should have a conversation around if your new potential partner is expecting quarterly or annual distributions of profits generated.