scattrplot

Re:Ask HN: Setting fair market valuation for founder's equity on Tuesday December 21, 2010 @05:54PM (#2029733)

We have an attorney and are looking for an accountant. But I wanted to check on HN as well.

We built a site and get a couple thousand visitors a day. But it's not self-sustaining - if we dropped work on it, the traffic would probably drop off. So I figured $10k was fair (?)

We plan to buy our founders shares, so I think (with the 83b election) our net income is zero — we paid $X for $x worth of shares.

Ask HN: Setting fair market valuation for founder's equity

Posted by scattrplot on Tuesday December 21, 2010 @05:05PM
from the ask-hn dept.

Howdy,We're incorporating a startup and need to set a fair market valuation for the company. This valuation will decide how much the founders pay for their shares.Has anyone heard of founders being audited by the IRS and being questioned on the FMV? We think a $10,000 valuation is fair right now, but we hope to raise a series A later this year based on a multi-million dollar pre valuation. ...

( Read More... | 6 comments | 17 points | on HN )