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Dilution concerns by founders and investors

Taffy Williams

Investors and co-workers in your startup often express dilution concerns. What is the dollar value of your ownership in the company?

Dilution and Investment - An Answer You May Not Expect

Taffy Williams

The companies with low prices either had to dilute investors in a financing, had enough to survive, or went out of business. So when you consider the Dilution Effects of a financing, remember the following advice delivered by many old timers; “ It is Better to Have 10% of a Lot of Money, than Have 100% of Nothing.”

Avoiding sticker shock from service providers

Taffy Williams

This can cause dilution that may be more acceptable than spending the cash. The investors may want a discount from the negotiated price to deal with the dilution. Basically, any dilution causes a reduction in your holding percentage and you take a haircut too. Legal fees alone work leading to a closing can become very large.

Are You Involved or Committed in a Startup?

Taffy Williams

They may have other interests that can dilute their attention to the company. Things that take your attention away only dilute your efforts in the company. Other articles can be found in the Charlotte, NC- small business section of Examiner.com. However, not all of the company participants will be committed to the company.

Your best customers sometimes kill your company

Taffy Williams

Spreading risk does dilute the potential for reward, but it protects the downside as well. Sorry I must say "Good Bye and I Am Leaving "!

Dialing for Dollars

Taffy Williams

One greatway to get non-dilutive financing is by partnering a product you may not wishto develop or sell yourself. Other articles can be found in the Charlotte, NC- small business section of Examiner.com. As statedbefore, your startup will have little or no money for the first severalmonths. These dealscan take many forms.

Startup Blog: Got Money or Need Money? Doesn't Matter. Focus.

Taffy Williams

The feeling is that all must be developed and this can lead to dilution of resources and slow advancement of your best products. Now what?