Re: How does equity work in a new company?
$x gets you y%. X and Y are whatever deal he/she can strike.
You seem to be missing a whole lot of information.
What do resource 1,2 and money get paid for salary. What type of work is being done?!? How viable is the venture long term, does it repeat, is it (linearly) upgradable?
if $200 gets you $400 after 6 months, can you double that to $800 after 12 months?
How probable is each outcome?
Is there a 4th outcome? The business continues?
Without knowing much, I would guess it is probably Not a new business but a one off deal (since you consider closing after increasing to 400.
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