I am considering investing in an early stage startup. I know the founders for many years and are more like family to me. I will be investing $100K with a convertible note. What should be the equity that I should be drawing out? I don’t want to draw just the fair amount so the company is not at a disadvantage when they eventually raise money outside of F&F. They are valued at $5M by a startup accelerator and received $50K as part of being admitted into the program. Contd.

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The point of the convertible note is usually that you don’t have to price the equity at this time. You can also use a SAFE like agreement which does the same without the note structure.

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get a lawyer. It amazes me the amount of people that come on here treating it like web MD. If you’re talking about 100k that isn’t spare change and the details of your particular circumstances should be discussed with an attorney and maybe a CPA or any family wealth planner you may have.

likesmart

Also feel free to DM I practice law in the start up VC space

They just signed a 5 year contract with a major client and should start generating revenue in 3 months from now.

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