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Strategy Roundtable For Entrepreneurs: Non-dilutive Financing Through Revenue Sharing

ReadWriteStart

I have discussed at length why revenue sharing channel deals may serve as perfectly fine alternatives to raising equity (or even complements) because of their non-dilutive nature. It certainly will be a better way to bootstrap the company. SOCO Games. The game has started getting some traction already, and has a good virality index.

Dilution 114
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One (round) and Done

Bryce Dot VC

Call it Bootstrap+, Fundstrapping or Series 1 and done, there seems to be a move towards simplifying the various funding schemes and getting down to the business of building a real business. And it rewards that early, and often painful, focus on revenue and sustainability with less dilution and more optionality.

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7 Best Strategies for Maintaining Equity

Early Growth Financial Services

Whether you’re funded, seeking funding, or still bootstrapping, here are some of the best strategies for avoiding dilution and maintaining maximum equity: 1. Doing so will prevent unnecessary dilution and it allows you to get the highest possible value for each round. Rightly so. Milestone raises.

Equity 38
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ProfessorVC: Touched by an Angel

Professor VC

I guess you can make the argument that the founders keep more of the company under the take angel money at a $1M pre-money valuation, but the stars need to be aligned and it is much more likely that initial VC funding in the angel scenario would be at a lower valuation with significantly more dilution. Bootstrapping 101. ► May.

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ProfessorVC: How much is enough?

Professor VC

While my ownership stake in the company has been diluted through these financings (and the merger with uControl), my carried interest (paper value of my equity) has been going up with each increase in valuation. While bootstrapping, there are multiple options from doing as a side project, changing the business, raising angel or venture, etc.

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How much equity for investors and employees?

dondodge.typepad.com

The second and third rounds of funding take additional shares of equity and dilute existing investors and founders. They start out higher and get diluted down to these levels after multiple rounds of financing; CEO - 4% VPs - 1% each Director level -.5% That is why the equity dilution is so high. How much money should I take?

Equity 40