VC Cafe
FEBRUARY 27, 2024
In smaller funds, ticket sizes tend to be lower, so pre-seed is the only stage where micro funds are able to secure their minimum equity targets. There are of course anomalies, like French AI startup Mistral which raised a “seed” round of $113M in June last year.
Both Sides of the Table
FEBRUARY 6, 2013
it’s the most expensive dilution you’ll ever face. But not anal if one founder who shares equity graciously with early employees who are treated as “co-founders” My idea startup team is heaving on tech personnel but also has strong product management. Engineering is critical but it is not everything.
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David Teten
AUGUST 19, 2019
This structure offers some of the benefits of traditional equity VC, without some of the negatives of equity VC. I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. We have a special program if you are pre-seed and need product development.
Startup Professionals Musings
FEBRUARY 13, 2013
A grant is not an equity investment, so the entrepreneur doesn’t have to give up a stake in the company either. Typically they can be used to fund product development and commercialization that would otherwise require outside investors. To the investors, it means less dilution and lower overall risk.
Business Plan Blog
OCTOBER 4, 2013
If you have a technical background and you are focused on product development, consider a co-founder with a sales and marketing background that can focus on selling your world class product. Be sure to leave plenty of equity for investors. Having too many co-founders will only lead to your eventual dilution.
blog.nahurst.com
JULY 19, 2010
This covers one of the most common situations I encounter: For a pre-funding web startup whose team includes only a non-technical cofounder, how much equity should an incoming technical cofounder get? This is an area that varies widely and can significantly impact how much equity a technical cofounder receives (if they take more salary).
David Teten
OCTOBER 1, 2015
Not surprisingly, the list above also is ranked from least to most equity stake in an investment for the investor, relative to the cash they invest. How would one set up such a startup to eventually raise capital from outside VCs, who will be wary of ‘dead equity’ (i.e., equity that belongs to departed cofounders)? The cliffs?
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