Ask HN: Funding my app myself
1 comments
You'll need to add a clause where a certain share of the stock (I assume you own 100%) to be bought back by the company each year. The percentage will take in account of the risk since the company will keep on growing. In any case, you'll have to have to have a business attorney to write the term sheet due to legal wording and general liabilities. Your best bet is to find a good template and have the attorney modify it - that way you save the attorney's time and your money.
Thanks for the feedback, I really appreciate it.
I'm with a small team of people and have enough funds to fund about 1,000 hours of work to get the application built. That's nearly double the number of hours I believe we need.
The product we will be building is a web app for businesses and I think will be popular (based on design feedback I've received from target market). We have free and paid plans. I'm predicting about $500,000 in revenue over 2 years after launching.
My question is this: I'm going to self-fund this but am writing a "term sheet" and wondered what I should put on it?
I also wondered what percentage of profits should I be paid back in?
Also, I was wishing to make a profit from the risk I'm taking on, so any thoughts on a percentage I should be paid "over" what I invest?
I'm going to talk to my accountant about my tax implications. I'm including a clause that says I get repaid from profits from the company. Thanks.