Ken and Mario,
After taking time to review the MOU proposing the services Giancarlo Petrini will be expected to provide as a partner and shareholder and the amount of stock sold to Giancarlo Petrini to LSI, we have first come to a few conclusions regarding how we expect LSI to operate moving forward and what needs to happen before we can seriously consider adding another partner to our operations at this time.
LSI needs to define a business plan and set clear goals. As it currently stands, there is no tangible focus on anything in our business. In order for Free Range WiFi to attract the attention of venture capitalists, it needs to be growing (revenue or active users) by more than 10% per week. How can we obtain those figures if we are spending an inordinate amount of time developing the …show more content…
What level of risk is he taking joining our operation? Fundamentally, we don’t know him. There has been an insufficient amount of time to have ‘dated’ him as a cofounder. How can we bring a stranger into our business and give him an equal share of the ownership? Why is 20% justified? 20% does not align with what other businesses in the industry are doing in similar actions. Why is there no vesting schedule?
Giancarlo Petrini’s equity should be based on his value as a contributor not his cash investment. He should only receive as much equity as his work and involvement deserves from this MOU. We need to do projections for a normal round of funding and see how much his $20k cash would be worth.
What is LSI going to use the $20k for exactly? Before LSI accepts capital, LSI needs to allocate how the capital would be used and consider the implications of accepting that capitol meticulously. Is Giancarlo Petrini the best source for $20k? LSI should look for other opportunities, if LSI doesn’t already have them, that don’t require selling more of the
After taking time to review the MOU proposing the services Giancarlo Petrini will be expected to provide as a partner and shareholder and the amount of stock sold to Giancarlo Petrini to LSI, we have first come to a few conclusions regarding how we expect LSI to operate moving forward and what needs to happen before we can seriously consider adding another partner to our operations at this time.
LSI needs to define a business plan and set clear goals. As it currently stands, there is no tangible focus on anything in our business. In order for Free Range WiFi to attract the attention of venture capitalists, it needs to be growing (revenue or active users) by more than 10% per week. How can we obtain those figures if we are spending an inordinate amount of time developing the …show more content…
What level of risk is he taking joining our operation? Fundamentally, we don’t know him. There has been an insufficient amount of time to have ‘dated’ him as a cofounder. How can we bring a stranger into our business and give him an equal share of the ownership? Why is 20% justified? 20% does not align with what other businesses in the industry are doing in similar actions. Why is there no vesting schedule?
Giancarlo Petrini’s equity should be based on his value as a contributor not his cash investment. He should only receive as much equity as his work and involvement deserves from this MOU. We need to do projections for a normal round of funding and see how much his $20k cash would be worth.
What is LSI going to use the $20k for exactly? Before LSI accepts capital, LSI needs to allocate how the capital would be used and consider the implications of accepting that capitol meticulously. Is Giancarlo Petrini the best source for $20k? LSI should look for other opportunities, if LSI doesn’t already have them, that don’t require selling more of the