Hi Felix,
- what kind of share I will get,
- maybe some key financial data, like how much capital you already
have, and how much you are still looking for,
ok let me give you an overview of funding and shares.
At the very beginning I lent 30k€ to start the studio
Then we did a first round of 50k€ 6 months ago, with a pre-money
valuation of 500k€.
We intend to do a second round soon, raising 200k€ with pre-money of
800k€ (therefore providing 20% of the shares to the newcomers).
Normally, all investments coming now should be part of the second round,
ie based on the 800k. But because you help us right now, ie earlier,
when it's really useful, and all the team at Farsides really appreciates
it, I don't think it would be fair to ask you to go with the same
valuation as the coming investors.
I would rather offer to go for 600k€ pre-money if that suits you (ie
somehow above the 500k to take into account the 6 months and
improvements since the first round, it's a message we'd like to send to
our first investors).
The tricky part is that with this model (as opposed to the model where
you're part of the second round), we would be launching a dedicated
round of funding for you right now, which in France is kind of
complicated and lengthy process (at least a month to receive the money).
I've asked our lawyer if there are ways to make this easier for you and
us, I might need a few days to get back to you on that with a solution.
I discussed the topic above with our lawyer yesterday.
The only way to do this with a specific valuation of 600k€ for you is to
do a specific round of funding.
I'm perfectly ok to do it, but it will take at least a month. So to
speed up things, there would be a way : it is that you do a loan to
Farsides, so the money can be transferred as soon as we sign the
contract; and then, once the round of funding is done, this loan of
yours is converted into shares of Farsides. If this solution is ok for
you, I can prepare a contract that will encompass both the loan and the
transformation of loan into shares.
Looking forward to have your feedback on this and on the rest of the
elements I provided in the previous mail.
If you prefer that we talk directly about these matters, I'm also
available on skype (dapoona) or on phone +33687700709
All the best,
David
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