David Teten

AUGUST 21, 2019

Less or no dilution. 2) To sell their businesses when they want – early, mid term, or never.” . When you raise early stage VC, you can’t sell early because the VCs won’t agree to it. Companies Lighter Capital has funded on average have negative 14% net margins.” Optionality.

Revenue 60

Revenue Liquidation Preference Equity Cofounder 60

Rob Go

JUNE 8, 2014

Raising capital is really difficult, no matter what people say about the influx of seed and early-stage dollars into the startup eco-system. Getting access to a breadth of network and resources is pretty helpful in the early stages of a company when you are under-resourced and have no scale.

Dilution 69

Dilution Early Stage Angel Investor Venture Capital 69

keen.io

FEBRUARY 5, 2013

These were the best resources I found: Equity for Early Employees in Early Stage Startups. Startup Equity for Early Employees. If the company is pre-funding or only has a small friends-and-family seed round, then the numbers should go up from there, based on expected dilution and greater risk.” 8 and 2.5%

Salary 50

Salary Equity Startup San Francisco 50

Gust

OCTOBER 8, 2014

There weren’t a lot of seed funds in 2007 so this was often done by angels, funding consortia or sometimes early-stage funds that existed then (First Round Capital, True Ventures, SoftTech VC, etc.). If you have raised $2-4 million from a bunch of high-net-worth individuals I simply don’t see it as an A-round. Why the latter?

Cap Table 136

Cap Table Silicon Valley Term Sheet Non-Compete 136

Rob Go

FEBRUARY 29, 2016

For early stage companies and for our new investment activity: I’m very bullish. There is always a market for strong companies, but you just may take more dilution than you otherwise would if you raise capital, or you may raise less for the same dilution. Here’s how I’d break it down.

Marketing 28

Marketing Dilution Burn Rate Seed Stage 28

www.payne.org

SEPTEMBER 22, 2011

3 Dilution. The total preference is less of an issue in early stage companies (e.g. However, it can be a significant issue in later stage companies that have raised a lot of money. Those new shares are created out of thin air by the company, and will dilute all of the current stockholders. diluted) terms.

Equity 56

Equity Employee Vesting Preferred Stock 56

venturehacks.com

SEPTEMBER 22, 2011

When you evaluate a candidate, ask yourself whether she is likely to increase the next round’s share price (include the dilution of her market rate options). Why would you do any transaction that was a net lose for the company, in the sense that it didn’t yield a multiple m such that m(1/(1 – n)) > 1? 1 is false.

Equity 40

Equity Cap Table Valuation RSS 40

www.paulgraham.com

APRIL 28, 2010

Sometimes angels deal terms are as fearsome as VCs.Other angels, particularly in the earliest stages, will invest basedon a two-page agreement. Whatkind of anti-dilution protection do they want? Angels and even VC firms occasionally do this, but they alsoinvest at later stages. The problems are different in the early stages.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

maplebutter.com

JANUARY 8, 2013

Do that – nothing else but one product / company / focus and get to $1M in sales with atleast $15% net profit. Friends & Family – High net-worth individuals with a passion for you and your industry. When it comes to early stage investing – it’s all gut. Once you’ve done that – then. do something else. A few thoughts.

Technical Review 44

Technical Review Startup Cofounder Software Review 44

abovethecrowd.com

APRIL 20, 2016

Never in the history of venture capital have early stage startups had access to so much capital. It will also minimize future dilution. I get that you want to grow and I want you to grow, but let’s internally finance that growth by spending gross margin dollars rather than new dilutive dollars of equity.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Rob Go

NOVEMBER 30, 2012

I was surprised to find that it has been more than two years since my post summarizing the state of the seed stage market, and trying to bring a balanced view on the rise of Super Angels and Micro-VC’s. The venture capital market continues to be in transition, and a lot of changes have occurred in the early stages of the market.

Seed Stage 55

Seed Stage Pre-Money Valuation Dilution Early Stage 55

www.paulgraham.com

APRIL 28, 2010

Dilution is normal. They cant dilute you without diluting themselves justas much. And they wont dilute themselves unless they end up net ahead. So its your choicewhether you get diluted. [ Theres no real answer.There is no rational way to value an early stage startup. 3% of your net worth.

Angel Investor 63

Angel Investor Syndicate Syndication Dilution 63

Up and Running

JULY 14, 2015

Peter: Techstars is probably the most famous accelerator but the idea of the accelerator versus the incubator because there is living field, because there’s this very early stage fields for them both. The cool thing is with the device like, that with the science like that, there’s a lot of early stage proving ground needed.

Incubator 60

Incubator Email Startup Oregon 60

Hunter Walker

NOVEMBER 25, 2022

The reality is that most hires to early stage startups will be taking a near-term hit to cash compensation or at the very least, earning less than they could if they *only* prioritized salary (and not role, company, or equity upside). 4%, to use same dilution multiple.

Salary 56

Salary Burn Rate Dilution Equity 56

Up and Running

DECEMBER 9, 2014

That’s because I think that sales and revenue solves a whole bunch of problems for companies, sometimes it creates [crosstalk 00:38:16] them but the majority is that it solves them is that I use for us a metric called Our Net Subscription Revenue Growth. The pro is that it’s cheap capital and it’s not diluted.

Small Business 95

Small Business Finance Forecast Metrics 95