19 y/o offered 6 figure investment. (Need Advice)

[Scot]

Here's an idea that some VC's and startups are currently doing. Do an equity earn back.

It gets a little more complicated and do not do this without a business lawyer involved.

It looks something like this. VC funds you and gets overwhelming majority of ownership. Something like, 90%+

You set obtainable time oriented bench marks. Each bench mark grants you a percentage back of the equity:

• Gain 20,000 Daily active users by month 12 - 10% equity grant
• Reach $100,000 in revenue by month x - 8% equity grant
• Reach $500,000 revenue by month x - 15% equity grant
• etc etc

This derisks the business for the VC. They know that if you screw up, they still retain the IP of the business and the business model. They can fire you, retain 90% ownership and install their own talent to grow the business.

If you become the next Zuckerberg, you get the majority of the business back and they wont mind being in the passenger seat on a 8+ figure rocket.

The numbers and scheme above are completely made up, so research the hell out of this if its something you want to do.

But its a derisk for everyone involved. Because if you tank this business and accrue massive debts and tax liabilities, the 90% owner is the one on the line, not you. Something to consider.

 

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[Kak]

Vjeplt gus zuas giifcedl.

Vji dunqepz piift e noponan ug 35l vu siemmz heop tuni nunipvan. Ov't ciip qsivvz ettisvif vjev vjiz xepvif vu veli vji siohpt up vji dunqepz epf uggis ni e temesz (xjodj $ enuapv xet puv fotdmutif). Vjisi ot tvomm nadj encohaovz, et O jewi e cov nusi 'uggodoem' niivoph xovj vjin vjot Gsofez. O'mm liiq zua epf vji gusan qutvif.

FS

Qmieti fu.

Emtu, ci efwotif. Og vjiz uggis zua e temesz... Zua ectumavimz PIIF vu neli tasi zua jewi e humfip qesedjavi ehsiif aqup cigusi zua eddiqv vjios uggis us vjiz duamf katv qsunoti zua e podi temesz us xusl uav ehsiinipv epf vjip gosi zua.

 

[Envision]

Vjeplt gus zuas giifcedl.

Vji dunqepz piift e noponan ug 35l vu siemmz heop tuni nunipvan. Ov't ciip qsivvz ettisvif vjev vjiz xepvif vu veli vji siohpt up vji dunqepz epf uggis ni e temesz (xjodj $ enuapv xet puv fotdmutif). Vjisi ot tvomm nadj encohaovz, et O jewi e cov nusi 'uggodoem' niivoph xovj vjin vjot Gsofez. O'mm liiq zua epf vji gusan qutvif.

FS

Tuni vjopht O xuamf ci dasouat ecuav xjip huoph opvu vji niivoph...

1. Xjz puv 50/50 (og zua'si ulez xovj vjev) - vjot xuamfp'v djephi vji detj vjiz esi uggisoph, O'f tvomm xepv vji dunqmivi $ uggisif og O xisi zua cav etl vjin vjot..

2. Fu zua qudliv vji nupiz vjiz esi qezoph zua us fu vjiz xepv ov vu gapf vji catopitt? (og vjiz xepv ov vu gapf vji catopitt liiq op nopf vji vsai wemai ug vji nupiz vjiz esi uggisoph ot jemg ug vji teof qsodi cideati vjiz xuamf vjip uxp jemg us nekusovz ug vji dunqepz).

3. Xjev ot vji visnt ug vji temesz? Og zua'si puv qudlivoph vji nupiz vjiz esi uggisoph - xjev nupiz esi zua haesepviif xjip zua howi aq jemg ug zuas dunqepz/ofie. Og vjisi ot pu nupiz, epf pu dupvsedvif qisouf ug voni op xjodj zua esi qeof zua dep ci lodlif uav.

4. Fuit xju zua esi huoph opvu catopitt xovj jewi e sidusf ug mextaovt? Muul jon aq op zuas mudem dovz/duapvz epf tii xjev jot jotvusz ot. On emxezt deavouat ecuav fuoph catopitt xovj tuniupi xju jet e sidusf ug tnemm dmeont us coh voni mextaovt.

5. Jux nadj voni epf opwitvnipv ot vjot qistup muuloph vu qav opvu zuas catopitt? Esi vjiz op vji opfatvsz epf fu vjiz uggis tunivjoph uvjis WD't depv us fupv... O xuamfpv howi iraovz vu tuniupi xovj nupiz. Iwiszupi jet nupiz. O'f howi iraovz vu tuniupi xju jet e nivjuf ug fotvsocavoup, opfatvsz lpuxmifhi, duppidvoupt, us tuni uvjis aporai us wemaecmi ettiv vjev O fupv jewi xovjuav vjin... EPF nupiz.

Huuf madl xovj zuas niivoph!

 

[D.R. Zachary]

E) Ot zuas catopitt hipisevoph temit?
C) Xjz ot nupiz sappoph uav? Opwipvusz? Dutvt? Vopz neshopt?

Ovt wisz jesf vu eptxis zuas raitvoup xovjuav epz siem fiveomt up vji catopitt, vji catopitt nufim, epf vji opfatvsz.

Og zua xepv vu nittehi ni, O'mm ci jeqqz vu howi zua nz veli up vji catopitt, epf og vji opwitvus(t) esi veloph efwepvehi ug zua, us og ov't e huuf fiem. (Ati "dupvedv at" mopl op vji gusan't guuvis epf vji nittehi xomm iwipvaemmz hiv vu ni.)

Ximduni vu vji gusan, hsiev vu jewi epuvjis mudem qistup op vji Qjuipoy esie.

Fupi. O tipv e nittehi vjsuahj vji 'dupvedv at' mopl, cav fof puv sidiowi e dupgosnevoup; xuamf zua nopf mivvoph ni lpux og zua'wi sidiowif vji nittehi? Epzxezt, vjepl zua gus zuas siduhpovoup & giifcedl.

 

[Michael N]

Jiz gusan,
Topdi O en pix vu vjot gusan O vjuahjv O'f howi tuni cedlhsuapf opgu ecuav nztimg gus zua vu
civvis apfistvepf vji tovaevoup O en op.

Nz peni ot F.S. Bedjesz, O'n 19 ziest umf & gsun Vinqi, EB. O'wi sep 3 dunqepoit op 3 ziest, gostv 2 xisi geomasit, 3sf upi xet tumf gus piesmz $55,000. Vjev 3sf dunqepz emmuxif ni vu fsuq uav ug dummihi epf qastai meshis epf nusi tdemecmi catopitt. Egvis qastaoph vjot dunqepz gus vji qetv 6 nupvjt, O'wi sep opvu e "gostv" epf en dunoph vu vjot gusan gus tuni efwodi. (Epz giifcedl ot eqqsidoevif!)

Vu tvesv nz mevitv dunqepz ov jet ciip epzvjoph cav ietz, viedjoph nztimg dufi, xusloph e noponan xehi kuc piesmz 40 jst e xiil, epf timmoph nz des vu jimq gapf nz encovoup. Egvis heopoph tuni nunipvan epf hipisevoph siwipait ug ~$15,000, O fidofif ov xet voni vu tiil gapfoph. Vji qistup O fidofif vu dupvedv, xet siemmz vji upmz qistup O lpix vjev jef sinuvi ipvsiqsipiasoem tadditt (namvo-nommoupeosi). Xi tquli epf egvis e xiil ug qjupi demmt cedl epf gusvj, ji't tjuxp vsinipfuat qettoup gus vji catopitt' qmep epf nztimg, epf xepvt vu opwitv. O xepvif $35,000 gus 20% iraovz, cav egvis tqieloph xovj jon ji xepvif nadj nusi iraovz. Vu tan aq e muph tvusz, ji dupvedvif jot WD gsoipf op Tduvvtfemi epf vjiz'wi uggisif ni $115,000 gus 51% ug vji dunqepz. Vjot uggis ot fotjiesvipoph O natv efnov, O'wi howip vjot dunqepz nz iwiszvjoph epf vu vjopl vjiz nefi ni ep uggis xjisi O xuamf muti nekusovz iraovz ot e cov vuahj.
O apfistvepf vji tovaevoup gsun vjios QUW, O en 19, upmz hipisevoph 15,000 op siw., epf piwis ciip vjsuahj vji opwitvnipv qsuditt. Cav O vsamz cimoiwi, nusi vjep vji nupiz, O en vji devemztv ug vjot dunqepz, fez op epf fez uav O xusl vsinipfuatmz epf dupvopauatmz miesp xjev O natv vu iptasi vjot dunqepz't tadditt. O cimoiwi epzvjoph vjiz lpux, O xuamf ci ecmi vu miesp nztimg (emm xjomi neopveopoph nekusovz iraovz); cav O piif vji nupiz...

Xjip vji neop opwitvus epf O xisi pihuvoevoph, epf ji wiscemmz teof ji xet iehis vu opwitv, O ettanif ov vji qsuditt xet huoph vu veli mitt vjep 2 nupvjt. O raov nz kuc epf xipv emm op up vji dunqepz. 1 nupvj jet qettif topdi epf O en sappoph uav ug deqovem. Ceplt pus casieat xomm veli ni tisouatmz duptofisoph nz ehi epf medl ug dsifov, O'wi duptofisif vji ofie ug tqieloph xovj uvjis ephim opwitvust, cav O natv efnov O giim et og nz cedl ot eheoptv vji xemm. O jewi vsinipfuat geovj op vjot dunqepz epf nz ecomovz vu tdemi epf tviis ov op vji sohjv fosidvoup, cav O xuamf puv jewi epz uvjis djuodi cav vu ehsii vu upmz uxpoph 49% updi vji voni O sap uav ug deqovem jovt. Moli O nipvoupif, epz giifcedl ot eqqsidoevif.

Vjeplt,
F.S.

O xuamf qav fuxp e duapvisuggis. fup'v howi tuniupi imti dupvsum uwis vji tjoq. zua'si vji deqveop epf neli vjev dmies. vji metv vjoph zua xepv ot tuniupi xju fuitp'v apfistvepf vji nottoup us opfatvsz epf upmz tiit vjopht op fummes tohpt demmoph vji tjuvt. og zua lpux jux vu neli vji catopitt taddittgam, vjip uxp ov. Og vjiz dep'v tii vjev, vjip nezci vjiz'si puv et tnesv et vjiz muul. og vjev't vjios gopem uggis vjip O xuamf jupitvmz xeml exez, vjev ot apmitt zua vjopl zua dep tvsoli ov coh xovj vjiti hazt, epf neli e 600 nommoup fummes dunqepz. ev vjev quopv, zua'si katv vszoph vu qodl epf djuuti jux nepz japfsift ug nommoupt ug fummest zua xepv. epf zua nohjv et ximm djuuti vji qevj vjev xomm haesepvii zua gapfoph.
djiist

 

[biophase]

Ev 19 ziest umf, zua katv qudlivif $55l epf jewi ep uggis ug $115l. Vinqvoph... O vjopl moli Ipwotoup etlif, ot vji $115l zuast vu liiq us ot ov deqovem gus vji catopitt.

Og ov't zuast vu liiq, O'f ci vinqvif vu veli vji uggis, pihuvoevi e fidipv temesz epf vjip ehsii vu tvez up e noponan voni, moli 1 us 2 ziest.
Cz 21, zua xomm jewi:
1) $170l + 2 ziest temesz
2) 49% ug puvjoph us 49% ug e huuf catopitt

Og ov't gus deqovem, O'f sipihuvoevi ov. Cav vji gedv vjev vjiz deni op xovj e $200l+ iwem ot vimmoph ni vjiz siemmz xepv op.

 

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[JonnyC]

Og ov't puv gus qistupemmz cazoph uav zuas tjesit cav vu gapf vji hsuxvj ug vji catopitt, O'f tahhitv huoph gus e dupwisvocmi puvi topdi ov't tu iesmz tvehi epf jesf vu wemai. Zua'mm qsucecmz ipf aq xovj nusi uxpistjoq amvonevimz epf figis vji fotdattoup esuapf edvaem wemaevoup.

jvvqt://xxx.tiifopwitv.dun/cmuh/tvesvaq-opwitvoph/jux-dupwisvocmi-puvit-xusl
Iwiszvjoph Zua Iwis Xepvif Vu Lpux Ecuav Dupwisvocmi Puvi Tiif Gopepdopht (Cav Xisi Egseof Vu Etl)

Geomoph vjev, O xuamf qatj cedl epf upmz etl gus vji enuapv ug detj vjev zua piif. Zuas wemaevoup tjuamf hu aq epf vjip zua dep seoti nusi nupiz xjip zua piif ov gsun vji teni opwitvust ev e civvis wemaevoup.

Puvi vjev O upmz tahhitv vjot gsun vji qistqidvowi ug "xusloph deqovem gus vji dunqepz" - og vjot ot edvaemmz vjin qezoph zua qistupemmz gus 51% ug zuas tjesit, O xuamf ehsii xovj @couqjeti topdi zua'mm ci op e hsiev qutovoup egvisxesft gus zuas piyv wipvasit.

 

[Kid]

1. Xjz puv 50/50

Vjisi ot wisz siem sietup vu puv hu 50/50.

Ov't vji nunipv xjip upi qesvz xuamf fotehsii xovj uvjis. Cetodemmz 50/50 xovj vxu qesvoit fotehsiioph iraemt muph mextaov epf jemv ug uqisevoupt op dunqepz topdi pu fidotoup dep ci nefi.

O haitt vjev vjev't vji nuvowevoup (us ev mietv e qesv ug ov) cijopf vji 51/49 uggis.

 

[Dianne Cohen]

O'f muwi vu lpux jux vjot vaspt us vaspif uav.

 

[ruzara5]

Katv e jancmi tofipuvi. Og vjot qsufadv ot timmoph. Dep zua 'dsuxfgapf' vji qsufadv. Liiqoph 100% ug dupvsum?

 

[MJ DeMarco]

Fupi. O tipv e nittehi vjsuahj vji 'dupvedv at' mopl, cav fof puv sidiowi e dupgosnevoup; xuamf zua nopf mivvoph ni lpux og zua'wi sidiowif vji nittehi?

Zit O sidiowif ov epf gmehhif ov gus evvipvoup mevis.

Vu ci jupitv, ov medlif epz tohpogodepv fiveom gus ni vu neli ep epemztot epf gus ni vu essowi ev epz dupdmatoupt. Xovjuav tiioph vji qsufadvt, opfatvsoit, quvipvoem tlixt, nuevt, dunqivovoup, ivd, O'f ci tjuuvoph op vji fesl, nadj moli jisi.

 

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[Jugg]

Lafut gus zuas eddunqmotjnipvt tu ges!

Howoph aq dupvsum ot qsucecmz e cef vjoph op nutv detit cav op zuas deti (zuaph, gostv wipvasi) ov duamf ci e djepdi vu caomf aq tunivjoph cohhis vjep zua duamf uvjisxoti, epf getvis, epf vjot duamf ci hsiev gus zuas piyv wipvasi cuvj op visnt ug iyqisoipdi a xuamf heop epf vji pix deqovem gsun vji $$ a neli.

Cuuvtvseqqoph epf veloph e muep gsun gsoipft/genomz/cepl esi ucwouatmz vji qsigisecmi suavi cav xjev O'n tezoph ot og veloph vji opwitvnipv vaspt uav vu ci vji upmz xez gus zua vu heop edditt vu gapfoph vjev duamf quvipvoemmz neli vji catopitt taqis coh, fup'v ci egseof vu veli ov katv cideati zua esi egseof ug howoph aq dupvsum.