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by kkowalczyk 4133 days ago
Obviously you have way more information about this, but judging from what you've disclosed, it's a terrible investment.

Stock in a company is worthless (literally, as in "worth $0") until 2 things happen: * the company gets sold * the company does an IPO

Those are hard for all kinds of companies but next to impossible for a consulting company.

Consulting companies don't scale they way product companies do.

Revenue of $20k/month is nothing (this is what Google spends on a good engineer per month). They don't make enough to pay you a market rate.

How is this company going to ever get to multi-million dollar a year profit (a condition necessary but far from sufficient for a sale or IPO) ?

You seem to be so pre-occupied with details of the deal that you seem to be missing the obvious thing: investing in this company looks like a terrible idea because there's no way this company is going to be so successful to warrant a sale or IPO.