View from Seed
DECEMBER 4, 2019
Although there are many factors at work, one challenge of those vintages is that most of those portfolios more or less came of age when the 2008 economic crisis occurred. In looking at the data, it’s interesting to note that the TVPI for funds from 2002-2006 is pretty weak. The post How is the VC Asset Class Doing?
Altgate
DECEMBER 15, 2010
This chart shows that adding additional founders to the team is in fact dilutive, but also that the more founders the more dilutive. Is the dilution of co-founders counterbalanced by other factors? Again, anecdotal though. So, I’m curious. What is your take? Is it worth it or not?
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Both Sides of the Table
OCTOBER 1, 2009
In the first post in this three part series I described why I believe the VC market froze between September 2008 – April 2009. If you’re raising $2 million and can close on $3 million – don’t optimize to minimize short-term dilution, optimize for contingencies in case the market gets worse. million – take it.
Both Sides of the Table
SEPTEMBER 29, 2009
Bu when you start to worry that the world is ending (as it seemed it was in late 2008 / early 2009) you tend to get worried about large burn rates. But imagine a VC that did 12 deals per year in 2006, 2007 & 2008. The company had a huge burn rate but investors and management brought that under control by late 2008.
Both Sides of the Table
FEBRUARY 17, 2011
If you are able to raise money from credible sources at a reasonable dilution percentage then I personally favor getting the round done now and building your business. How much dilution am I going to have to take now? So if you can take 27% dilution for $1.5 25% dilution). But this is the exception, not the rule.
Startup Lessons Learned
JULY 5, 2010
When I wrote a review of Four Steps on this blog in November, 2008, I did my best to be candid and warn of a few shortcomings: And Steve is the first to admit that its a "turgid" read, without a great deal of narrative flow. Its part workbook, part war story compendium, part theoretical treatise, and part manifesto. I think theyve succeeded.
Both Sides of the Table
JUNE 5, 2011
But the reality is that you’re faced with two problems: 1) the earlier the stage the riskier and thus more write-offs so you need to have enough ownership percentage in your winners to make up for the losers and 2) the earlier stage your check the more likely the company will need many more funding rounds behind you and thus you face dilution.
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