Re:Ask YC: Advice after receiving seed funding offer?
by mattmaroon on Thursday May 22, 2008 @02:31AM
(#196961)
If you're ok with the valuation, I'd suggest negotiating a 10% options pool. Also say "we think the board should represent ownership" and give them at most one of them and two of you.
Be sure to have a lawyer look over any term sheets as well. And definitely don't pay any of the investor's legal fees out of your $25k.
My feeling is that this is shady. It's very unusual behavior for a VC to fund a company for so little, or to even want to sit on the board of a tiny company, let alone position themselves to potentially control it.
Be sure to have a lawyer look over any term sheets as well. And definitely don't pay any of the investor's legal fees out of your $25k.
My feeling is that this is shady. It's very unusual behavior for a VC to fund a company for so little, or to even want to sit on the board of a tiny company, let alone position themselves to potentially control it.