I pitched (FindEarlyAdopters.com) to an accelerator in Amman-Jordan, they want to invest in the concept, this is the deal
Total Investment Amount: $50,000
Cash Investment: $33,000
In-Kind Services: $17,000
In return of 10% of equity
I want to understand the steps to negotiate the terms sheet, cap, equity, etc. I already read KISS of 500 startups, now it is the time to change the sheet to match this specific startup.
I already asked for their term sheet template to understand their process.
My questions are
1- How do I valuate this startup based on the milestones we have done (listed below)?
2- What are the things I should negotiate? What are the things I should not let go? What are the things I can neglect?
3- What are the common questions I should ask? What are the common pitfalls I should avoid?
Here what we have done so far:
1- We sold one client the service without a product.
2- We validated the problem, solution, market.
3- We delivered the service.
4- We understand the model & processes
Attached with this post,
the pitch deck (https://drive.google.com/file/d/0BzbCg9rVA-0YRzJXMms3RU1wVDg/view?usp=sharing)
financial model (https://drive.google.com/file/d/0BzbCg9rVA-0YZlQ4dXprYWZ0bkk/view?usp=sharing)
and a video pitch (https://www.youtube.com/watch?v=z_XN2eR2Keg)
Please ask any questions you have, I think this discussion is a great blog post to share with other entrepreneurs