Looking for some ideas on what price to put on equity that can be purchased in the future. So for example, if I buy into a start-up now with 20% equity for $100, after what period of time should I be able to purchase more equity (let’s say up to another 10%)? And at what cost - for example, the same cost as when I originally bought the 20%? At that cost plus a percentage? At the estimated current value of the business? Or at a value that is agreed upon by all shareholders as ‘reasonable’?
Eager to know of any best practices around this topic.