So I have a some close friends who started this quite successful company a few years ago. After some buzz in media with some quite heavy players investing I thought I'd reach out too see if I could join in. Seeing as I'm no millionaire this will be one of the few times I'm able to particiapte. I belive in their business model bigly and honestly think they have a very good chance of succeeding.
Up until now I've only invested in stocks and mutual funds so when it comes to investing in privately-held companies what pitfalls and financial key metrics should I look at / ask them?
The company today:
- Current outstanding shares: 6m
- Implied equity value: 23m USD
They are about to initiate another round of funding, this will be a large round where they are trying to raise 440m USD since they are scaling up substatntionally from local to national distribution and sales in order to supply demand , if sucessfull it will change the numbers to:
- Outstanding shares: 15.5m
- Estimated valuation: 440m USD
Estimated earnings/projections look good but what specific answers should I ask them before jumping the gun and what key metrics should I try and calculate?
Submitted March 18, 2021 at 08:54PM by curiousabe_1 https://ift.tt/38RN7SL
