This is a little complicated, but I have an interested group of angels asking for how much for 10%-20% of my company. I have no clue what to tell them, or what my valuation is.
- It is a B2B Saas product, past prototype, but pre-launch (so no revenue yet).
- I've worked fulltime as the CEO for 1.5 years (without pay).
- My cofounder invested $75,000 cash, and has also worked part-time for a year; we're not developers so we had to hire to have it built.
- We had top of the line UI and graphic design done as well.
- A year ago, I launched a B2B marketing channel for the software (to gain some customer traction before the product was built), the annual growth rate hit 3,000%, and it actually generates it's own income now from advertising. Free marketing for my software?
- A few months ago, I added a strategic consultant to my team (no salary, for a small piece of equity). He has 14 successful exits under his belt (3 IPO's).
- The consultant I hired is negotiating a $1.2 million dollar client for the software; but it's still 6 months out before they're looking to buy; so there is no contract yet.
What do you guys think?
By the way, I'm a serial entrepreneur in my mid 20's. I've only had small service based businesses, this whole "high growth tech startup" thing is new to me....so be gentle!