Startup Professionals Musings

NOVEMBER 4, 2013

They don’t realize that this option would likely be their worst nightmare, since it costs millions for the road show, usually dilutes your equity to a tiny fraction, and takes away all your entrepreneurial control. IPOs in 2008, the market was up to a still trivial 128 in 2012 (compared to 675 in 1996).

IPO 224

IPO Founder Exit Strategy Investment Bankers 224

Feld Thoughts

JULY 14, 2015

Assuming equity is raised at or above that cap, the total dilution, before the new money, is 16.6% (equivalent to an equity financing of $1m at a $6m post money valuation. The new money comes in at a pre-money valuation of $100, but includes a complete refresh of founder equity to 40% of the company.

Recapitalization 70

Recapitalization Pre-Money Valuation Post-Money Valuation Angel Investor 70

Up and Running

DECEMBER 9, 2014

I have been involved in startups since I graduated from college in 1996. Jared could you quickly tell us what are the pros and cons of a bank loan versus an investment for equity? The pro is that it’s cheap capital and it’s not diluted. Are you going for private equity? That’s fantastic.

Small Business 95

Small Business Finance Forecast Metrics 95