While I agree with Robert that selling equity positions in your company separately from any dealership licenses is the way to go, you shouldn’t set your share price at random.
Even if your company is just a start-up with no material assets that would mandate a traditional valuation, you can still do a rather simple Discounted Cash Flow Valuation (DCF) that will compute the company value solely based on its revenue/profit potential.
Also, please keep in mind that in order to solicit investments from anybody in the United States, you will need to comply with state Blue Sky Laws and federal securities regulations to steer clear of any trouble. Having said that, you can’t just approach anybody with your investment proposal without registering your securities or claiming an exemption from registration. In any event, you will need to provide potential investors with detailed information on a wide cross section of material aspects of your business to enable an educated decision on their end and satisfy statutory requirements.
It really sounds like your invention has a lot of potential. Wouldn’t it be a shame to get shortchanged or even get in trouble simple because you didn’t set this up properly?
Corporate finance certainly is no playing ground for the inexperienced as this can have far reaching implications. A well-defined capital market strategy that reflects value creation and appropriate risk taking in compliance with relevant securities laws and regulations is therefore a fundamental consideration and the first stepping stone to successfully approach investors.
Advanced Document Design for entrepreneurs, intermediaries, and the financial services industry.