7/18/22 - Andreas Reviewing Terms
by Parker · 21 things on Twos
- 1 million at 16M, capped at 20%, expiration 5M in total capital raised without the 200k
- What is the 1M value cap at?
- 500k at 18-24 mo? Not really, virality, can't do too much on paid ads and hiring
- Linear user growth, intermediary revenue source, free users converting to paid users
- Very tricky to have a metric that will trigger the 1M investment
- Can bend on the numbers and take the heat from the other TBV guys
- Continue to support the community and vision
- 15-20% but it could be less
- They have the option unless we have more people talking to us and giving us term sheets for 5,8,10M check
- Raise at a valuation hirer than 16M
- 600-1M check
- Wants to exercise this option with private insider round
- In growth stage you are required to create 10% option pools
- He wants to be the favorite investors. Because he believes in us
- 2.5M at 10M would make his option completely worthless
- We would need to raise 3.5M at whatever
- We present to our advisors and lawyers and then we have an open conversation if it sounds good
- Buying access and opportunity to buy more stock, single name for a bigger chunk
- He was once a founder as well so he understands our side
- Wait to do it, it can get messy if you raise through a StartEngine or Republic. Do it later as part of a Series A and let people directly invest in Twos. Automated update in Twos
- The most interesting user is a mom, construction worker, the broader audience, if you are getting these super power users then you'll get a bunch of requests very specific