View from Seed

DECEMBER 4, 2014

Editor’s note: Understanding how to divide founder equity at a startup can be tricky, even to the point of reaching emotional riffs between founders. Below, Lee Hower offers advice for approaching these equity discussions objectively and properly. Sometimes co-founders put off the equity split question for some time.

Equity 315

Equity Founder Sweat Equity Cofounder 315

View from Seed

APRIL 30, 2015

Glen Mello: Venture debt is a good complement to equity. It’s generally got a lower cost compared to equity capital and can help support growth. So it makes it a lot more challenging when you have debt on the books that isn’t as longer term as equity. NVV: Is there any dilution? What are some pros and cons?

Term Sheet 120

Term Sheet Equity Startup Seed Stage 120

View from Seed

SEPTEMBER 23, 2019

To provide relevant perspective, listing past convertible note(s) and/or equity financing(s) including total round size and valuation (caps) is helpful. Plus, any other non-standard items here should be called out, too, like non-dilutive grants, as applicable. First, it’s helpful to enumerate the startup’s funding history to date.

Cap Table 211

Cap Table Seed Stage Valuation Dilution 211

View from Seed

SEPTEMBER 14, 2021

Seed investors are being compensated for the risk because later-stage investors are paying higher prices, and diluting early-stage investors less. Source: Cambridge Associates (VC) & TradingView (Equities). This could mean that everything is going to be ok, as Tim Urban explained. So, to conclude, are we in a bit of a bubble?

Valuation 319

Valuation Pre-Money Valuation Distribution Early Stage 319

View from Seed

SEPTEMBER 14, 2021

Seed investors are being compensated for the risk because later-stage investors are paying higher prices, and diluting early-stage investors less. Source: Cambridge Associates (VC) & TradingView (Equities). This could mean that everything is going to be ok, as Tim Urban explained. So, to conclude, are we in a bit of a bubble?

Valuation 295

Valuation Pre-Money Valuation Distribution Early Stage 295

View from Seed

SEPTEMBER 14, 2021

Seed investors are being compensated for the risk because later-stage investors are paying higher prices, and diluting early-stage investors less. Source: Cambridge Associates (VC) & TradingView (Equities). This could mean that everything is going to be ok, as Tim Urban explained. So, to conclude, are we in a bit of a bubble?

Valuation 156

Valuation Pre-Money Valuation Distribution Early Stage 156

View from Seed

JANUARY 26, 2016

Third, founders at this stage have an incentive to minimize dilution at the point when their equity is the least valuable. Second, the time frame required to achieve these milestones are often shorter than the standard 18-24 months. This is why pre-seeds tend to be between $50K and $500K.

Seed Stage 120

Seed Stage Early Stage Cofounder Finance 120