I have a meeting for a potential seed investor. I have been working on a big idea for the last 2 years. Proto- bus plan- marketing plan, website is done. The idea has the potential to become very big very quickly. I am asking for $70,000. I was thinking to give him 10% of the company until he gets 20 times investment and then 1% of the company. Or should I set up a promissory note ? What would be the best set up for it? What if he wants stock?
A promissory note is not the proper vehicle to use for what you're proposing - and a 20x return is HUGE....way too much!
You'd be amazed at how many times you don't actually need "money" but rather ingenuity to start a business, and also there are a number of grants available from various sources and/or bartering opportunities that can be structured with existing business's for what you need.
I'd be happy to help you explore options - please feel free to call upon me. I've started many businesses of my own over the last four decades, and spent many years assisting others after that - when I was in commercial lending.
It sounds to me like you've got the desire, and you've put some time in - quantifying that is necessary so that you appear to have some skin in the game may prove very useful to you as it will likely improve your chances of persuasion.