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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