After a few encouraging meetings, I'm creating a prototype for afantasy sports-related app. The plan is to launch it and accumulate enough users to demonstrate market acceptance. In addition to showing that I can move past the idea stage, my thinking is that it'll be easier to get investors/partners involved if I give them a product they can demo for themselves.
I interviewed several designers/developers and have settled on a bid to create an MVP in the 65K range (for breathing room, I plan on raising closer to 80-90K). I have 15K of my money to start and will raise the rest, I hope, through family and friends.
In my pitch I'll outline the worst-case scenario: this is far from a sure thing and nobody should put up money they can't afford to never see again, i.e., if this project loses money, we all lose money (including my 15K). In the mid-range outcome, if the app generates any sort of income all investors will be repaid in full before I pay myself.
My question is how to approach the payback structure in the event the app does well and leads to bigger things. I plan to share the wealth, so what sort of return is more than fair and how do I present it to early investors?
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