IT:BD:Finance/Value Of Company

Consider the following scenario:

Two partners:
- PartnerA puts in a year of work, afterhours, at 4 hours a day, at going rate of 80K/annum. As it's half a day, the value of the work is 40K.
  - Maybe it's worth more: http://www.entrepreneur.com/article/182440
  - PartnerB puts in 9K of cash equity.
  - The notional value of the company is therefore 49K.
  * The company is formed with 1200 shares.
- The Notional Ref value of the company is therefore 49K/1200 := $40.83
- It's notional as its face value, without intent to be sold/tested.
- At the end of this period of time, the company has
  - additional assets in the form of computers, worth 5K.
  - created IP that
    - if sold incomplete on the open market, would be worth 5K
    - if completed, could be worth 2,000,0000.
  - The Total value is either:
  - 49K + 5K + 5K (ie, 59), and to attract an additional 200k of investment, would mean that the additional shares would be worth 200/259 of the company.
  - To attract an additional 200K, would be worth 200,000/2,000,059 of the company.
  In addition, the sweat van be valued as shares, or a loan, that is either secured, or unsecured.
Constitution (Rules)
- Lodged with Company's Office
HouseKeeping
- Accountant
Shares can be allocated by:
- Share Holders Agreement (less formal, but signed).

Process