Let’s say I’m incorporating a new startup as a C-Corp with 10 million shares at a value of 0.001 per share. I’m incorporating a C-Corp because I’m planing to raise funds in the short term. Because I’m starting the start-up with my money and I’m planing to bootstrapping at least for 6 months, my question is about: in what moment I fund/inject the startup with my money? 1) Let’s assume I wanna own 60% of the start-up. Do I have to deposit $6,000 in the start-up bank account? 2) Assuming the (1) it’s correct. Let’s assume in the sixth month I need to inject more money to the start-up from my pocket again. What happen if I want to add more money to the startup? that shares change their value? Do you have any links for on-line courses or books about this topic?
If you are a startup, you are always in fund-raising mode. As more investors come onboard, your "capitalization table" will change. Sophisticated investors don't like this 'cap table' to be messy (i.e., too many people at the party). Also, while raising funds, make sure, very sure you keep your legal and financial documents in order. Even if you have a winning product / value proposition, if these are not properly take care of, it's a big red flag.
Answered 3 years ago
Access 20,000+ Startup Experts, 650+ masterclass videos, 1,000+ in-depth guides, and all the software tools you need to launch and grow quickly.
Already a member? Sign in