My friend has a startup comapny. The company licenses a software for public participation (example: a municipality wants to conduct a survey/discussion between it's citizens regarding changes they want to make, so they create a survey in the software and the public votes).
His company currently works with a big municipality and 2 other smaller organization totalling to about 70K$ a year (45K$ NET).
He says that he chose a PE of 15 (instead of the usual 30 according to him) and he says he will probably add more organizations this year to get to 140K$.
So he wants me to invest in his company right now for an evaluation of 2.1M$ (140 * 15). So I'll be putting in 10K$ to get 0.02 percent.
I wasn't sure about it so I figured I'll ask. I know it's a broad question but I'd like to know if the evaluation could be OK or if it's an extremely good/bad evaluation.
More information: the company was opened 2 months ago but they worked on the software for 6 months, they paid 50K$ for the software, my friend is around my age (27) but he has a partner in the company which is older and has connections in the goverment sector (including municupalities).