He is a former co-founder(their co-founded company went under) currently he is an angel investor in this startup. He is asking for 50% of a company on $1000 investment (that is to say an initial evaluation of $2000) for a company that has already turned 4K in profit. The investor has already broken his side of the agreement of 500 a month for 6 months, Why on earth would he expect a full share of the company? He deserves something more than his 1000 back, but it should be closer to a couple of percent ownership. Considering an angel usually gets 10-20% and his early break of contract that would put it at around 3-6% ownership. If he still wants in he should get it, or a new valuation and pay out on that amount of ownership if he doesn't.
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He is a former co-founder(their co-founded company went under) currently he is an angel investor in this startup. He is asking for 50% of a company on $1000 investment (that is to say an initial evaluation of $2000) for a company that has already turned 4K in profit. The investor has already broken his side of the agreement of 500 a month for 6 months, Why on earth would he expect a full share of the company? He deserves something more than his 1000 back, but it should be closer to a couple of percent ownership. Considering an angel usually gets 10-20% and his early break of contract that would put it at around 3-6% ownership. If he still wants in he should get it, or a new valuation and pay out on that amount of ownership if he doesn't.