D.R. Zachary
New Contributor
Hey forum,
Since I am new to this forum I thought I'd give some background info about myself for you to
better understand the situation I am in.
My name is D.R. Zachary, I'm 19 years old & from Tempe, AZ. I've ran 3 companies in 3 years, first 2 were failures, 3rd one was sold for nearly $55,000. That 3rd company allowed me to drop out of college and pursue larger and more scalable business. After pursuing this company for the past 6 months, I've ran into a "first" and am coming to this forum for some advice. (Any feedback is appreciated!)
To start my latest company it has been anything but easy, teaching myself code, working a minimum wage job nearly 40 hrs a week, and selling my car to help fund my ambition. After gaining some momentum and generating revenues of ~$15,000, I decided it was time to seek funding. The person I decided to contact, was really the only person I knew that had remote entrepreneurial success (multi-millionaire). We spoke and after a week of phone calls back and forth, he's shown tremendous passion for the business' plan and myself, and wants to invest. I wanted $35,000 for 20% equity, but after speaking with him he wanted much more equity. To sum up a long story, he contacted his VC friend in Scottsdale and they've offered me $115,000 for 51% of the company. This offer is disheartening I must admit, I've given this company my everything and to think they made me an offer where I would lose majority equity is a bit tough.
I understand the situation from their POV, I am 19, only generating 15,000 in rev., and never been through the investment process. But I truly believe, more than the money, I am the catalyst of this company, day in and day out I work tremendously and continuously learn what I must to ensure this company's success. I believe anything they know, I would be able to learn myself (all while maintaining majority equity); but I need the money...
When the main investor and I were negotiating, and he verbally said he was eager to invest, I assumed it the process was going to take less than 2 months. I quit my job and went all in on the company. 1 month has passed since and I am running out of capital. Banks nor bureaus will take me seriously considering my age and lack of credit, I've considered the idea of speaking with other angel investors, but I must admit I feel as if my back is against the wall. I have tremendous faith in this company and my ability to scale and steer it in the right direction, but I would not have any other choice but to agree to only owning 49% once the time I run out of capital hits. Like I mentioned, any feedback is appreciated.
Thanks,
D.R.
Since I am new to this forum I thought I'd give some background info about myself for you to
better understand the situation I am in.
My name is D.R. Zachary, I'm 19 years old & from Tempe, AZ. I've ran 3 companies in 3 years, first 2 were failures, 3rd one was sold for nearly $55,000. That 3rd company allowed me to drop out of college and pursue larger and more scalable business. After pursuing this company for the past 6 months, I've ran into a "first" and am coming to this forum for some advice. (Any feedback is appreciated!)
To start my latest company it has been anything but easy, teaching myself code, working a minimum wage job nearly 40 hrs a week, and selling my car to help fund my ambition. After gaining some momentum and generating revenues of ~$15,000, I decided it was time to seek funding. The person I decided to contact, was really the only person I knew that had remote entrepreneurial success (multi-millionaire). We spoke and after a week of phone calls back and forth, he's shown tremendous passion for the business' plan and myself, and wants to invest. I wanted $35,000 for 20% equity, but after speaking with him he wanted much more equity. To sum up a long story, he contacted his VC friend in Scottsdale and they've offered me $115,000 for 51% of the company. This offer is disheartening I must admit, I've given this company my everything and to think they made me an offer where I would lose majority equity is a bit tough.
I understand the situation from their POV, I am 19, only generating 15,000 in rev., and never been through the investment process. But I truly believe, more than the money, I am the catalyst of this company, day in and day out I work tremendously and continuously learn what I must to ensure this company's success. I believe anything they know, I would be able to learn myself (all while maintaining majority equity); but I need the money...
When the main investor and I were negotiating, and he verbally said he was eager to invest, I assumed it the process was going to take less than 2 months. I quit my job and went all in on the company. 1 month has passed since and I am running out of capital. Banks nor bureaus will take me seriously considering my age and lack of credit, I've considered the idea of speaking with other angel investors, but I must admit I feel as if my back is against the wall. I have tremendous faith in this company and my ability to scale and steer it in the right direction, but I would not have any other choice but to agree to only owning 49% once the time I run out of capital hits. Like I mentioned, any feedback is appreciated.
Thanks,
D.R.
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