I am trying to start a tech start-up after working for more than 7 years in the corporate tech industry. At the moment I have a serious investor lined up for the business. However, I have an issue where I'm not happy with. And I'd like men like us to comment on this. I'm already talking to few other friends on manosphere in person and listening to their words.
The situation:
First: it's me. I have graduated from CASS Business School, with an MSc in Management and Entrepreneurship, along with work experience in blue chip companies in the relevant industry. For this business, I have resigned my corporate job and comfortable salary. Plus, I have left Britain and moved to Iran to build this business. That shows enough my commitment and readiness to scarify everything I have to make it work.
Second: there is an investor. The guy is well connected to the Iranian government and knows all the loops and appropriate connections. He has few spare million dollars in his pocket which loves to have fun with. He himself has more than 15 companies with offices in Dubai and Tehran. This guy is ready to give me an office with equipment plus all staff salaries for the first 12 months.
Third: there is a guy who has connected me to the investor. The investor only puts his money down for this guy because he trusts him and knows him for many years. They've worked together before not only in business, but also politically.
The issue I see here is how we are going to share the equity. The investor wants 50% of the business. The connection guy wants 20% and it only leaves me with 30% of the business. That means I'm going to start a business which from day one I know the maximum I have is only 30%.
In future, I also need an optional pool for future key employees. For example, I need to bring a CTO which I have to give him something like 5%. Plus for the second round of investment (if needed) I will still need to give share away.
I personally don’t get a good vibe from this deal. As it's been said no deal is better than a bad deal. This is not something I'm going to sign. My question is what would be fair. I have suggested that I need at least 54%, investor 45% and the connection guy 1%.
What do you think?
The situation:
First: it's me. I have graduated from CASS Business School, with an MSc in Management and Entrepreneurship, along with work experience in blue chip companies in the relevant industry. For this business, I have resigned my corporate job and comfortable salary. Plus, I have left Britain and moved to Iran to build this business. That shows enough my commitment and readiness to scarify everything I have to make it work.
Second: there is an investor. The guy is well connected to the Iranian government and knows all the loops and appropriate connections. He has few spare million dollars in his pocket which loves to have fun with. He himself has more than 15 companies with offices in Dubai and Tehran. This guy is ready to give me an office with equipment plus all staff salaries for the first 12 months.
Third: there is a guy who has connected me to the investor. The investor only puts his money down for this guy because he trusts him and knows him for many years. They've worked together before not only in business, but also politically.
The issue I see here is how we are going to share the equity. The investor wants 50% of the business. The connection guy wants 20% and it only leaves me with 30% of the business. That means I'm going to start a business which from day one I know the maximum I have is only 30%.
In future, I also need an optional pool for future key employees. For example, I need to bring a CTO which I have to give him something like 5%. Plus for the second round of investment (if needed) I will still need to give share away.
I personally don’t get a good vibe from this deal. As it's been said no deal is better than a bad deal. This is not something I'm going to sign. My question is what would be fair. I have suggested that I need at least 54%, investor 45% and the connection guy 1%.
What do you think?