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Question on bringing in a strategic company before pre-seed funding.
I’m seeking advice on a big decision for my startup. I’ve built a marketplace platform (MVP complete, pre-revenue) that connects local government officials with GovTech companies to streamline technology adoption. A potential strategic partner has offered $15,000 in exchange for 25% equity. Here’s what they bring to the table: **Extensive network:** They lead an association and have deep connections with local government officials. This would be a free sign up for officials. **Value Add:** Their involvement could drive government officials to the platform, making it more attractive to paying GovTech companies. Here’s my dilemma: **Pros** Their network could help jumpstart the marketplace and attract paying clients. **Cons:** 25% feels like a significant chunk for $15,000 at this stage, especially since I’ve built the platform solo. I’d love your thoughts on: 1. Is this a fair trade-off for the stage I’m at? 2. Should I structure the deal differently (e.g., milestone-based equity or SAFE note)? 3. What should I consider before giving away a quarter of the company pre-revenue?1
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