Remove Dilution Remove Finance Remove Retention Remove Revenue
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Which Fundraising Round Should You Skip?

View from Seed

The reality is that if a founder raised every one of these rounds, and lead investors always got their “target” ownership, the level of dilution would be ridiculous. No good investor would want the founder/CEO of a company to have insufficient ownership by the series A, and every founder I know is sensitive to taking too much dilution.

Dilution 149
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A VC: Employee Equity: How Much?

www.avc.com

This "best value" can be the valuation on the last round of financing. Whatever approach you use, it should be the value of your company that you would sell or finance your business at right now. The other important data point is the number of fully diluted shares. Or it can be a public market comp analysis.

Equity 64
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The Direct-to-Consumer Checklist

Austin Startup

These strategies can be useful in increasing initial conversions from your ads and website traffic, but offering large discounts too early in the life of the company will lower your gross margins and CAC, both of which will affect your unit economics and future financing conversations. You’ll need to invest more here than you think.

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In 2017, GE Will Buy More Tech Startups Than Google

Hunter Walker

This keeps them aligned with their investors since a $250m exit with modest venture financing raised can be wonderful for all parties, but the same transaction can look awful if your last round was $60m on $300m pre! Next Level: Buying Customers/Revenue/Distribution. See Mint and Periscope as examples.

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Ted Rheingold Founded Dogster in 2004: Five Questions About Building a Startup, Selling a Startup and Whether SF Is Still a Good Place

Hunter Walker

I wish I could claim I deftly foresaw this, but I was just seeking recurring revenue to to cover OneMatchFire’s office expenses. By the end of 2004 I had brought on two co-founders: John Vars – who is now the Chief Product Office at TaskRabbit, and Steven Reading took over Sales and Revenue. InVenture is in a really great place.

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Bonuses Are Toxic At Startups

epaley.com

Once financed, everyone at the startup should have a reasonable salary, but the real compensation for achieving the improbable is the equity that is typically shared between all employees proportional to the expected contribution of each person. Using revenue metric.s Or a good retention tool. Instead they do $9MM in sales.

Salary 41
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Crazy! 189 Answers To The Top Startup Questions On Your Mind

maplebutter.com

Product/Metrics (70%/30% time) * Get your product activation (sign-up + meaningful action) to 60% * then, Get your product retention to 20% weekly. I would focus on one product and set a goal to generate $1M in yearly revenue from it. If you believe in it – then finance whatever you can yourself. Once you’ve done that – then.