Cofounder Dilution Equity Government 
Both Sides of the Table
AUGUST 14, 2017
I read commentary or Twitter or blogs and realize that there are also strongly held convictions that there are these evil VCs who do terrible things to mostly altruistic founders. But unlike the popular press reporting of this conflict — 80% of the time it is founder-to-founder conflict and not investor-to-founder conflict.
Startup Professionals Musings
SEPTEMBER 27, 2023
Even though initial stock has no value or market, it is extremely valuable in dividing entity ownership between multiple co-founders, commensurate with their investment, contribution and role. Make sure the government waits for a stock sale to collect taxes. Key founder vesting should have no cliff.
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David Teten
JANUARY 19, 2021
(co-written with Jamie Finney, Founding Partner at Greater Colorado Venture Fund. From RBI, Flexible VCs borrow the ability to reap meaningful returns without demanding founders build for an exit. From traditional equity VC, Flexible VC borrows the option to pursue and reap the rewards of an outsized exit. Of the Inc.
This is going to be BIG.
JANUARY 18, 2024
Some of these folks are founders and CEOs, but not at high-growth tech startups. On the other hand, they could be the opposite—much more focused on near-term cash distributions than long-term equity appreciation. Role When I was a lowly Analyst at Union Square Ventures, I had so many ideas for the founders we worked with.
Both Sides of the Table
MAY 9, 2011
I covered what I call “the co-founder mythology.&# Either you’re not technical and you think you need a technical co-founder or vice-versa. Conventional wisdom says that you gain far more in working as a team than you lose by diluted by half before you start. Hire your co-founder.
Startup Professionals Musings
JANUARY 15, 2021
Even though initial stock has no value or market, it is extremely valuable in dividing entity ownership between multiple co-founders, commensurate with their investment, contribution and role. Make sure the government waits for a stock sale to collect taxes. Key founder vesting should have no cliff.
David Teten
AUGUST 19, 2019
This structure offers some of the benefits of traditional equity VC, without some of the negatives of equity VC. I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. For background, see Revenue-Based Investing: A New Option for Founders who Care About Control.
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