Question
My name is Mohamed and I am the CEO of Vendigo and the founder of "Shoot it!", a social sports mobile app which is set to launch in Fall 2016. I am a 22 year old marketing student from Toronto, but an entrepreneur by heart. I believe I have developed a concept that will revolutionize the social sports video-sharing industry. While learning more about the industry itself, I also have found a void in the market and I intend on capitalizing on it. I am in that pre-development stage where I have a business plan, a targeted marketing strategy, and a business model that will prove profitable.
I am looking to raise 75k CAD to develop and market my app. What is the value of my startup? How much equity should I give away?
Answer
I would make it easy on yourself and your investor and take the investment as a convertible, in particular since it is a small amount. That way you defer the valuation discussion.
