How much would you consider investing on a company that’s ‘high risk’ in the sense that it is a social-media? The goal is to sell in 3-5 years. This has been created in an established market, has increasing site visits by the day and hour… the vision and market need is clear. The hustle of the team is undeniable.

What other questions would you want answered? Is 200k for 20% unrealistic?

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Leadership qualification and Business plan would be the basics.

helpful

Visits aren’t users. How can they quantify commitment (memberships, HVAs, etc) would be the biggest question.

Second is why this problem and why now. Hustle is fine but unless they’re prepared to prostrate themselves at the altar of this idea down to the last penny then it’s not going to be a comfort to me.

Mathematically that figure is not unthinkable but depending on what the rest of the balance sheet looks like I’d be cautious of taking such a substantial stake. How much are founders retaining? What is your standing in future rounds (this must be in writing)?

helpful

Great insights, thank you!

I’d consider investing between $0-$200k based on what you shared. This hypothetical doesn’t provide the information on whether this is a good investment or not.

helpful

You rock M1! I will be sure to include this information as I work to fully develop my investor deck. Thank you

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