Brace yourselves. Another blog post about MANteresting. Over the last six months we have had one specific individual reach out to us multiple times. He wants to join the team and has expressed interest in growing our site and giving us money to help make that happen. Jesse and I have always politely declined his offers.
After a few months of silence, he reached out again last week. We decided this time to open the door for conversation. After a few email exchanges, the time came for us to tell him what we would want from him. Jesse and I talked and felt that offering him a 5% stake for $10,000 was fair. He responded pretty quickly saying he’ll go in for $10,000 for 7.5%.
His counter was reasonable. Knowing that he reached out to us, and not us to him, I responded back with 5% for $10,000 and clarified he would be given no voting rights in the business. He simply becomes a shareholder, not a team member. He obviously didn’t like that.
Seeing that I am not an investment banker I really have no freaking clue what I’m doing, haha. I’m convinced he’d pay us $10k for 5% if we gave him voting rights. That puts our value at $200,000. I have no clue if MANteresting could sell for $50,000 tomorrow or $500,000.
Question 1: Where can we get an appraisal of our site’s value? Who do you talk to? Angel investors, lawyers, bankers?
I will also admit I am a little ignorant on how partnerships work in business. Jesse and I get along great. We are 50/50, and don’t necessarily know what a 47.5%/47.5%/5% voting split would mean. We’ve all heard about the Facebook partnership debacle...
Question 2: If we bring him on with 5% voting rights, all hell could break loose couldn’t it? What would keep me and this guy from forming an alliance and taking virtually all control away from Jesse? Nothing right?
We really want to stop burning a whole in our pockets. We could use this $10,000 to build out virtually every feature on our wish list and probably sustain the site for an entire year.
Yes, I have more than $10,000 in my savings account, but I’m not comfortable putting an increasing amount of money in MANteresting until I can be certain I will be getting all of it back. We know we have huge potential (and this guy does too), but I bet MySpace thought it would be around for a lot longer than it was too. We’d build an iPhone app tomorrow for the site if we had $10,000 to mitigate the cost.
Ugh. There are so many details I want to share so you guys have a better understanding of the business and can give more solid advice, but this post would be like 10 pages, and 90% of you would be bored out of your mind. Anyone out there with experience dealing with this kind of thing? Jesse and I are trying to navigate as best we can, but really need to speak with an expert. Lawyers, bankers, and people who successfully operate partnerships… please drop me a line! Heck, even if you don’t know anything, do you know someone who does?
My favorite nail from yesterday: