HN user
So going with your sample of $100,000.
1. I have 100 shares 2. Newcomer does $4000 worth of work and therefore gets 4 shares. Meanwhile I have done another $6000 worth of work so I get 6 shares, there are now 106 shares in the company and the company is worth $110,000 (until it can be properly valued based on other metrics).
Just writing this out for myself really, I realise shares issued don't have to be divisible by 100.
That proxy is probably the only one that makes sense at this early stage, effectively it could be worth absolutely nothing or millions in x years.
Ok, that makes sense so the issue may be to agree on the value of the platform before it really has traction.
I know the quality of my work is high but that many others have failed to compete with the major well funded players in this space.
I guess the value has to be based mostly on potential revenue at such an early stage.
So if there are three well establish direct competitors (in Australia) would I look at what percentage COULD be gained and the value of one of those competitors?
Thanks for this, makes total sense and I'll remember it. Can I ask what you use for your blog, I like the look and feel and the share bar at the bottom and would like to re-use it if I can.