On Fri, May 20, 2016 at 3:54 PM, Vincent Mosoti via skunkworks < skunkworks@lists.my.co.ke> wrote:
For Investors/ Entrepreneurs in the list, i have 2 questions regarding the subject;
1) Who is responsible for making the term sheet, Investor or Entrepreneur? 2) What's the ideal equity percentage that's given to an Investor funding an early stage start-up ?
This is a very general question that usually requires a very specific answer. Every case is unique and a lot of the terms will depend on the state of the company when the investment is made. There are lots of numbers out there - employ your google fu. However, speaking from personal experience (observation of 9 companies): - Investor usually provides terms, the entrepreneur responds to the term until an amicable solution is reached or one party walks away. - Equity percentage depends on valuation of the company vs money being injected. In my observation you're looking to give away roughly 20% of the company at every stage for the money required.
NB: If anybody has a term sheet template specifically for Kenyan market, please do share.
-- Vincent Mosoti, Analytics/Business Intelligence Consultant. Skype: vmmosoti Phone: +254 722 972805 LinkedIn: ke.linkedin.com/in/vmosoti
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