Demand Dilution Distribution Sales 
Startup Professionals Musings
APRIL 23, 2012
Building a product doesn’t get it distributed and sold. Expertise can be marketing, technical, financial, or sales. Providing the major funding source for an early-stage startup is a totally different dimension, but it usually trumps all the items above in demanding some equity. Pre-existing intellectual property.
Startup Professionals Musings
NOVEMBER 8, 2010
Building a product doesn’t get it distributed and sold. Expertise can be marketing, technical, financial, or sales. Providing the major funding source for an early-stage startup is a totally different dimension, but it usually trumps all the items above in demanding some equity. Pre-existing intellectual property.
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Both Sides of the Table
JULY 22, 2010
So taking the same fund raising round and assuming that the VC wants the options including before he or she funds (and before is totally standard) then the math works like this: Assuming a 15% option pool post funding then you need a 20% option pool pre funding (because the pool gets diluted by 25% also when the VC invests their money).
Both Sides of the Table
NOVEMBER 14, 2017
and we were met with weak demand, slow growth and high costs. We realized that operating a business in distributed markets presented multi-city coordination efforts that we weren’t prepared for. were more distributed. We spent a few hundred thousand dollars opening up operations in Chicago and Washington D.C.
Both Sides of the Table
JUNE 17, 2017
The most obvious way to explain this is with sales people. If you hire 6 senior sales reps in January at $120,000 / year salary then you’ve taken on an extra $60,000 per month in costs yet these sales people might not close new business 6 months. COGS” represents the amount that each sale costs you.
David Teten
JANUARY 19, 2021
From RBI, Flexible VCs borrow the ability to reap meaningful returns without demanding founders build for an exit. Flexible VC creates early liquidity which can be either reinvested or distributed to LPs. Santa Clara University shares their demand dividend structure. . Early liquidity. Equity VC is a “get rich slow” business.
Startup Company Lawyer
MARCH 14, 2010
If new investors get better rights in a future equity financings (such as registration rights, price-based anti-dilution, redemption rights, etc.), The liquidation preference would not apply in this situation, and any distribution to stockholders would trigger the dividend preference. Anti-dilution protection. Co-sale rights.
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