Originally Posted by DamageX

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.