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Originally Posted by EroticySteve
For $200k in seed capital it should be more than a million dollar idea and that information would need to be disclosed first.
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For a $1M/year profit idea, I believe $200K in seed capital is even too little. Assuming that the investor would accept a 20% stake in the venture, the payback would be only a year, making a profit for all additional time during which the 20% stake is maintained. Most venture capitalists look for a 3-5 year payback time for a 20% stake. Of course, it also varies highly depending on the industry and the risk involved, but hell, for $200K you'd be doing a hell of a deal if you bought a 20% stake in a $1M/year profit idea.
