Starting an online business
Hi, I am about to start an online business where I am in discussion with some investors for seed funding. Although I could find someone ready to invest in smaller amounts, I am not sure how to negotiate with them on the ownership, and how much money I need from them for running the business.. Also I am even not able to answer when I can give them profit and what percentage. I am sure that my business will be profitable in 1.5-2 years. As per my rough calculation, I would require around $ 20,000(INR. 10,00,000) to run it for 1.5 years, and currently I cannot add anything from my pocket to that. Please help me with details like 1. How much I should collect from investors and from how many investors? 2. After which year I should share profit and what percentage? 3. How I can distribute ownership of many company with the investors and should it be directly propotional to the investment from each investor? 4. What will be the pre-money and post-money valuation of my company and how it is related to the ownership percentage? Answers would be much appreciated! Firoz CT
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