Both Sides of the Table

APRIL 3, 2010

I believe these VC funds have suffered some amount of reputation fall out. So if a VC wants to work with really talented early-stage entrepreneurs there are times where they have to be willing to seed fund them in order to be in the deal. They said that they didn’t want the extra money or dilution. Seeds deals.

Venture Capital 265

Venture Capital Term Sheet Early Stage Silicon Valley 265

Cracking the Code

MAY 29, 2019

A CEO has to manage issues of strategy, culture, talent, customer service and reputation – often all at once. But at scale, it gets diluted and you have to codify it, writing down what matters and making it memorable. The CEO also needs to manage the evolution of culture as the company scales.

Dilution 48

Dilution Early Stage Reputation Management 48

David Teten

DECEMBER 2, 2019

I’m now researching non-dilutive funding for Action Tank , a startup I’m gestating to “Make America Functional Again”. I worked with outsourced research firm Wonder * to identify all of the institutions we could who support tech impact startups with cash and community, and in many cases without dilution. SEIF Awards Tech for Impact.

Technical Review 60

Technical Review SBIR Dilution Silicon Valley 60

aweissman.com

JANUARY 30, 2010

There is an amazing wealth of innovation around early stage venture financing, most of which developed in just the past few years. 3) Strengthens the First Round brand and reputation. If not, the value of the exchange fund is diluted. 3) Strengthens the First Round brand and reputation. Yes, they are a solid team.

Early Stage 46

Early Stage Entrepreneur Cofounder Framework 46

Both Sides of the Table

MAY 7, 2016

If you’re an early-stage startup and even contemplating acquiring other companies slap yourself in the face and focus on your own business instead. Your reputation won’t suffer if your business does. Or some teams who start driving revenue paper over the fact that they aren’t acquiring customers profitably. You can evolve.

Churn Rate 150

Churn Rate Vesting Dilution Europe 150

www.paulgraham.com

APRIL 28, 2010

One of the dangers of taking investment from individual angels,rather than through an angel group or investment firm, is that theyhave less reputation to protect. Sometimes angels deal terms are as fearsome as VCs.Other angels, particularly in the earliest stages, will invest basedon a two-page agreement. Hell if they know.In

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

YoungUpstarts

SEPTEMBER 14, 2015

They give up balance, which leads to dilution of focus, in favor of an “all in” and committed attack. Sure, the pitch is all about track record and reputation and success, but everybody at the table knows that sooner or later the startup is going to hit a bump in the road. But this is REALLY HARD TO DO. Maybe a big bump.

Entrepreneur 100

Entrepreneur Dilution Chicago Partner 100

Feld Thoughts

JULY 14, 2015

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. And developing a reputation for recapping seed rounds is, in my book, silly. Here’s the scenario. So they recapitalize the company.

Recapitalization 70

Recapitalization Pre-Money Valuation Post-Money Valuation Angel Investor 70

www.quora.com

SEPTEMBER 22, 2011

Early employees are paid a salary from day 1, don't have to have the reputation/connections to raise money, take on much less risk, and often have much more information about the company (team so far, financials, product traction/progress) when they decide to join than the founders do when they found the company. link] 8/12/15.

Equity 40

Equity Employee Founder Cofounder 40

abovethecrowd.com

APRIL 20, 2016

Never in the history of venture capital have early stage startups had access to so much capital. It will also minimize future dilution. I get that you want to grow and I want you to grow, but let’s internally finance that growth by spending gross margin dollars rather than new dilutive dollars of equity.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Hunter Walker

NOVEMBER 17, 2014

I went out west and started knocking down the doors of the most reputable investors that I had been reading about. HW: Is it getting more competitive for early stage VCs like yourself? Then they prove themselves and we get diluted. Most of those doors were reinforced with steel and never budged, but a few opened.

Detroit 91

Detroit Michigan Brazil Seed Stage 91

Startup Professionals Musings

APRIL 23, 2012

If you are recognized as an expert in the business area of your startup, with a good reputation, and you know all the key vendors and customers, your value is huge. 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.

Intellectual Property 252

Intellectual Property Equity Cofounder CTO Hire 252

Startup Professionals Musings

NOVEMBER 8, 2010

If you are recognized as an expert in the business area of your startup, with a good reputation, and you know all the key vendors and customers, your value is huge. 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.

Equity 228

Equity Intellectual Property Cofounder CTO Hire 228

Both Sides of the Table

MARCH 1, 2010

He was grateful since I stuck with my first company, BuildOnline, well beyond when others would have (since I had taken great dilution during the dot com burst.). Let me outline the contra viewpoint, which is never expressed openly, but it what I believe gives our industry a bad reputation. Large early stage rounds. •

Entrepreneur 321

Entrepreneur Warrant Silicon Valley Early Stage 321