CEO wants ₹3 lakhs (INR 300,000) to start a new company

 Great — if the CEO wants ₹3 lakhs (INR 300,000) to start a new company, that’s a very early-stage (pre-seed) investment. Here's how you can think about it:

✅ What ₹3 Lakhs Can Be Used For (Typically):

  • Company registration & legal setup

  • MVP (Minimum Viable Product) development

  • Initial marketing or website launch

  • Basic tools, software, domain, hosting

  • Hiring freelancers or a small team (short term)

🧠 Key Considerations Before Investing or Joining:

1. Equity Share

  • Ask how much equity is being offered for the ₹3 lakhs.

  • Example: If the company is valued at ₹10 lakhs pre-money, ₹3 lakhs would buy 23% of the company post-money.

2. Revenue Plan

  • What’s the roadmap to generate income?

  • How soon will the company break even?

3. Business Model & Market Fit

  • Is there a clear product-market fit?

  • What's the problem being solved?

4. Your Role

  • Are you a co-founder, employee, or passive investor?

  • Are you expected to contribute more than money?

5. Exit Strategy

  • Will there be future funding?

  • Is the goal to build, grow, and exit (acquisition or IPO)?

💬 How You Can Ask the CEO

Here are a few respectful ways to gather clarity:

“What’s the intended use of the ₹3 lakhs, and what milestones do you expect to hit with it?”

“How much equity is being offered for this initial investment?”

“Do you have a projected revenue or profitability timeline in mind?”

If you'd like, I can help you draft a simple investment agreement, founders’ equity split, or even a basic 12-month financial plan.

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