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8 Keys To Maximizing Your New Venture Stock Net Worth

Startup Professionals Musings

This is called stock dilution control. While new equity owners always have to get it from someone, actual re-allocation of existing shares should be based on a formula to maximize the value of your remaining founder shares. Minimize your own loss of ownership as major investors contribute.

Stock 240
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How Much Should You Raise in Your VC Round? And What is a VC Looking at in Your Model?

Both Sides of the Table

It’s true that some later-stage private equity firms like to fund “roll ups” (a company that acquires many related companies in it sector), but this is seldom the domain of VCs. Every VC wants to fund a deal that seems to have too much demand. Having too little demand leads to bankruptcy.

Burn Rate 247
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Startup Funding – A Comprehensive Guide for Entrepreneurs

ReadWriteStart

In very few specific cases, depending on the nature of the business, the business model might demand a considerable gestation period or extensive research and development. Forms of funding. ? Equity investment. Equity investment is the most popular and most talked-about avenue for startup funding. Equity investors.

Startup 150
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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

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. Flexible VC 101: Equity Meets Revenue Share. Equity Ownership. Yes, typically preferred equity.

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How To Prevent Your Founder’s Shares From Vaporizing

Startup Professionals Musings

This is called stock dilution control. While new equity owners always have to get it from someone, actual re-allocation of existing shares should be based on a formula to maximize the value of your remaining founder shares. Minimize your own loss of ownership as major investors contribute.

Vesting 298
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A Different Path To Startup Success: How To Avoid Taking Money And Losing Control

YoungUpstarts

Deciding whether to increase money or trade equity in the business for much needed assistance, could be a tough call. I raised money and traded equity, but with my venture, I had to make one of the toughest decisions, to build it with some assistance of co-founders. Both the choices tend to take away a few options. Plan, Plan and Plan.

Cofounder 102
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A framework to think about pricing seed, angel, and venture capital rounds

This is going to be BIG.

2) Supply and demand of capital willing to invest in your company. Getting less dilution than standard means that you have to have made fantastic progress, have a world class team, etc. The other way to move that number is much more simple-- generate more demand for the round than there is supply of allocation.