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by onetwofifth
4051 days ago
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1. All the mentioned is that they all put "tens of thousands/car money" each, so I assume 50k each? Hard to say. They also need to hire a 4 other production workers (Server side, UX, QA, design, etc). 2. By valuation they claim that is what they will be worth based on user base (8/per user I keep hearing). That is the business model. I am highly skeptical, I put it at 10 million in a 1-2 years at best. They want to sell the app ASAP. They claim they won't sell for less than 25 million. They say "every 1% be worth $250k - $1.5m" 3. To be fair they did claim it was insane. "Equity vests when app ships" was in the terms for the 0.5% to 2% I got in the various offers. 4. I have no idea about such tax implications. All I heard was preferred stock. Any information would be appreciated. |
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As for the salary, ask yourself: how long will this company be able to make payroll with nothing more than "car money"? The all-in burn on you alone will be in excess of $11,000/month. Even if you assume that the four other roles are filled with folks who will work for peanuts (not likely), it doesn't sound like the company currently has more than a half a year of runway, and that's probably being generous. For all you know, the founders, who you say have full-time jobs, might be putting money into the company on an ad hoc basis and could bail after a month if they lose interest.
Frankly, in my opinion, barring some major details you've omitted, this offer sounds like you're being told you won the lottery but have an incurable illness and two months to live. The fact that the founders are still employed elsewhere, aren't being forthcoming and have audacious, unrealistic expectations about valuations and exits before they even have a product are huge red flags.