I have a startup and an investor is willing to invest in our company, but my partner and I do not know how much we should ask from this investor. How much is the normal figure to ask for?
Plus, he has a huge network for us to meet our potential clients.
I'm not sure if the is a "standard" amount for the first investor in. I have taken seed funding for two companies from different investors. Each time the investor put in 25k. Both times the investment was concept stage -there was no product or traction yet. I have learned that the first investor in is one of your most important investors because they can set a productive tone for future deals - or go sideways at the wrong time and be problematic. Best to go with an experienced investor who is well regarded and comfortable with early stage investing and shares your vision for growth.
How much equity did you give up for the 25k?
So as long as you don't intend on being the largest shareholder and so as long as the start-up continues to grow. EQUITY DOESN'T MATTER. Each round of investments you will be essentially be diluting all the previous owners' holdings.
The job, of the OP, right now is to get the angel investor to invest enough money to get the start-up operating at a profit in exchange for as little equity as the angel will agree to.
Do your financials and determine what you need to get to your next milestone. Then use that as an ask.
+1
also add like another 50% to whatever your projection tells you.
The answers above will get you in trouble.
Decide what you need to go the entire distance. (EXAMPLE BELOW)
That is the amount you should give up no more than 20% for.
This is not what you are asking for i your seed round, however.
In your seed round, ask for your salaries for your first two years.
Your job then will be to go out and raise the rest of the money before you do anything else.