We have a startup with 3 co-founders each having 33.3% of the company. So far we have raised 100k internally and split it 3 ways. Now we wanted to raise another 100k round internally. If one founders adds the 100K (while the other 2 add nothing) how is it fair to be compensated (lets assume the internal valuation for the firm is $1 million).
A) Everyone gets diluted by 10% equally (30-30-30), and then the one founder bumps 10% (30-30-40) B) A convertible note for 100K (with a industry standard interest rate, premium to series A investor and valuation cap)
What are the positive and negatives of each. Also, how would a convertible note effect the need for a future convertible note down the line? We intent to raise a $300-$500k in convertible note 3 months later through angel/seed investors. Would those investors demand better terms?