Here is the scenario:
I am the ceo/founder of a company that will be launching a website/application. The amount of cash I have invested thus far is less than 3,000.
I am currently seeking investments to cover the development cost of the platform (around 30k). This is purely my logic, but I am inclined to offer an x% return on any principal invested with payback beginning whenever p&i becomes x percentage of the companies net income.
Is it possible to build in a clause where the return is calculated as being a ratio or p&i and net income. This may be a more attractive deal to investors?
Additionally, investors in the initial round of funding will always be given first look at subsequent rounds of investing. I may be way off in this line of thinking but I want to avoid selling equity at such an early stage of investing when the company cannot be tangibly valued. If all of that goes according to plan, I will retain 92.5% of the company and have a product that is ready to launch. I will be allocating 7.5% ownership to the development team.
Once we have a product and begin generating interest, I will be going after much larger sums of money >100k to cover operating costs. I realize this next question may be to situationally dependent to be answered, but what should my expectations be in regard to my ownership stake when I am negotiating with investors.