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Question

Let’s say I’m incorporating a new startup as a C-Corp with 10 million shares at a value of 0.001 per share. I’m incorporating a C-Corp because I’m planing to raise funds in the short term.
Because I’m starting the start-up with my money and I’m planing to bootstrapping at least for 6 months, my question is about: in what moment I fund/inject the startup with my money?
1) Let’s assume I wanna own 60% of the start-up. Do I have to deposit $6,000 in the start-up bank account?
2) Assuming the (1) it’s correct. Let’s assume in the sixth month I need to inject more money to the start-up from my pocket again. What happen if I want to add more money to the startup? that shares change their value?

Do you have any links for on-line courses or books about this topic?

Answer

Dr. Sean Wise answered

So basically you are not correct. I think you need to gain a better understanding of the basics of capitalization. These should help:

http://www.axial.net/forum/business-valuation-intro-pre-post-money-valuation/

http://avc.com/2009/11/valuation-and-option-pool/

http://fundersandfounders.com/how-startup-valuation-works/

http://www.bothsidesofthetable.com/2010/07/22/want-to-know-how-vcs-calculate-valuation-differently-from-founders/