Both Sides of the Table
FEBRUARY 6, 2013
Quick summary: Be careful not to have too many co-founders. it’s the most expensive dilution you’ll ever face. I don’t think VCs care as much about co-founders & economics as people think. Without strong PMs you build crappy products that nobody needs or that real people can’t use.
David Teten
AUGUST 19, 2019
RBI normally requires founders to pay back their investors with a fixed percentage of revenue until they have finished providing the investor with a fixed return on capital, which they agree upon in advance. For background, see Revenue-Based Investing: A New Option for Founders who Care About Control. Alternative Capital. “
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Up and Running
JULY 2, 2014
of our company in exchange for the $300K, and my business partner and I each diluted from 50% ownership down to 33.3% ownership and never dilute. When fundraising for a startup, all investors dilute as additional investors join in on the deal. The deal we made with him was he’d get 33.3%
ReadWriteStart
JANUARY 27, 2011
I have discussed at length why revenue sharing channel deals may serve as perfectly fine alternatives to raising equity (or even complements) because of their non-dilutive nature. Also, an Incubation Radar profile on CrowdEngineering explains more about this very, very cool company doing crowdsourced customer support.
YoungUpstarts
DECEMBER 18, 2014
One of its primary goals was to galvanize product development by discovering often-unstated customer needs and creating solutions for them. Unfortunately, Toyota diluted that system in its drive for global expansion and global sales leadership. Make it a duty to dissent (even when you have to shoot down a HiPPO).
Berkonomics
MAY 13, 2021
There is a fine line between loading the company with too much debt and diluting the shareholders too early with additional equity investments. Here, most experienced board members can help to streamline the process of product development, manufacture, channel management and marketing.
Startup Lessons Learned
JULY 5, 2010
As all of you know, Steve Blank is the progenitor of Customer Development and author of The Four Steps to the Epiphany. I have personally sold many copies of his book, and continue to recommend it as one of the most important books a startup founder can read. On the minus side, that has made it a wee bit hard to understand.
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