New ask Hacker News story: Questionable Value Proposition(QVP)
Questionable Value Proposition(QVP)
2 by QFV | 0 comments on Hacker News.
I have a product prototype. Here's the proposition I am making to investors: I will give them 5% equity for $1 dollar under the following conditions: Every year for the first 3 years, they are required to buy an extra 1% of equity at the value of the revenue for that year. For example: Year 1: Say revenue is $0, then they will buy 1% at $0 dollars, so free. Year 2: Say revenue is $1 Million, then they will buy 1% at $1 Million. Year 3: Say revenue is $10 Million, then they will buy 1% at $10 Million. So, they will have paid $11 million for those 3%.
2 by QFV | 0 comments on Hacker News.
I have a product prototype. Here's the proposition I am making to investors: I will give them 5% equity for $1 dollar under the following conditions: Every year for the first 3 years, they are required to buy an extra 1% of equity at the value of the revenue for that year. For example: Year 1: Say revenue is $0, then they will buy 1% at $0 dollars, so free. Year 2: Say revenue is $1 Million, then they will buy 1% at $1 Million. Year 3: Say revenue is $10 Million, then they will buy 1% at $10 Million. So, they will have paid $11 million for those 3%.
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