Re:Ask HN: Co-founder quitting job and investing $ - should ...
by cofounder1234 on Friday July 23, 2010 @04:49PM
(#1542364)
I prefer #1 since #2 somewhat hinges on the startup making enough money to pay me back. I don't think my co-founder will realistically be able to write me a check out of his pocket.
We haven't done a cap table or stock valuation...perhaps now's a good time to start.
Your investment can be one of the following:
1) cash investment where you buy stock like any other investor
2) loan with defined payback terms.
Just because you are a cofounder or have some equity now does not mean you have to invest and put your money at risk for no ROI