Equity share to investor

[modano]

Hi,

I have a patent pending on an invention of mine, and am now looking for investment to take it further. All engineering and cad modeling is done, so next is creating a prototype, testing, tweaking, manufacturing etc.

I don't have the finance for it myself, but have one person who is very interested to join me as he believes in my invention.
We sat down and went over numbers and it seem about £50,000 is needed.

My question is, how do I figure out the percentage to give him for investing and helping to make the product a reality. What parameters do I need to know to figure the number out, is their some kind of formula that is used as an base to determine this?..

I see all the people on Dragons Den come in and ask for £x for x% of their company, how do they value this? and specifically if you are in the infant stage as me, where you have no sales etc?

Thankful for any help!

regards,
modano

[Williams lester]

Your accountant should be able to advise on the best method of valuation, but the true value will be what someone is prepared to accept for their investment.

[Billmccallum]

How much have you spent on developing the product?

Do you have a Ltd co. set up?

What are the sales forecasts for the product?

How long before the investor sees a return?

Will the investor work in the business?

What skills will they have?

Can they add value?

These will all impact on the value of the investment.