afakevc

joined 11 months ago
[–] afakevc@alien.top 1 points 11 months ago

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.