Business Valuation Opinion – Early Investor Equity Dispute
We need a straightforward written opinion on what equity share is fair to offer an early investor in a Canadian tech startup.
The situation:
- Investor put in $10,000 CAD four years ago during the ideation phase, with no equity percentage agreed upon at the time
- Investor made no further contributions of any kind
- Other investors who came in earlier each received 5% for $25,000 in cash and services provided over four years
- The company has pivoted significantly and the current product is materially different from the original concept
- Current valuation is $500,000 CAD
- We offered 0.5%. The investor feels early-stage timing entitles them to more, but has made no formal counter-offer. We followed up with an offer of 2% after consulting with peers. But the investor has not replied.
What we need:
A short written opinion (1–2 pages) stating what equity percentage would be considered fair and market-standard given these facts, and brief reasoning for that conclusion.
Ideal candidate:
Someone with experience in startup equity, early-stage investment, or business valuation. Legal background is a plus but not required. Must be independent of both parties.