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Why Entrepreneurs Should Be Generous With Investors

YoungUpstarts

by Alejandro Cremades , cofounder of Panthera Advisors and author of “ The Art of Startup Fundraising: Pitching Investors, Negotiating the Deal, and Everything Else Entrepreneurs Need to Know “ Why should entrepreneurs intentionally be generous when negotiating with investors? Your Reputation is on the Line.

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The Silliness Of Recapping Seed Rounds

Feld Thoughts

A company raises $1m of seed money from angels in a convertible note with a $6m cap. 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. Sure – it happens.