How much equity should I give to an angel investor funding my idea based on wireframes and a business plan?
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The funding is based on the idea and on wireframe prototypes, plus an executive summary and plan. The funding of $50K will get the product built within 3 months for beta testing. If successful the potential market is huge and global.
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Answer:
The best strategy is to give some equity less than 10% now, with some concessions if you do A, B, C you get more funding from the Angel. This makes it a win win for all parties to be successful. You will need more money for PR, Marketing, Employees, etc...So I'd advise a long term relationship with milestones/goals for more funding if you deliver.
Amish Shah at Quora Visit the source
Other answers
Do a convertible note or convertible equity. If you punt on valuation then you don't have to give a set amount of equity which may be way higher or lower than what the company is actually worth.
Max Bloom
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