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How to Configure Your Startup Team

Both Sides of the Table

My rationale is simple: everything goes wrong and only great teams can respond to competitors, markets, funding environments, staff departures, PR disasters and the like. it’s the most expensive dilution you’ll ever face. I am fond of quoting that about 70% of my investment decision of an early-stage company is the team.

Cofounder 388
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8 Questions to Help Decide if You Should be Raising Money Now

Both Sides of the Table

If you are able to raise money from credible sources at a reasonable dilution percentage then I personally favor getting the round done now and building your business. How much dilution am I going to have to take now? So if you can take 27% dilution for $1.5 25% dilution). But this is the exception, not the rule.

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Is Crowdfunding for Startups a Good Idea?

ReadWriteStart

Founders should consider other fundraising possibilities, such as traditional venture capital or angel investment, as well as non-dilutive funding sources such as grants or loans. While it can be a beneficial tool for raising funds and developing a community of supporters, it should not be a startup’s exclusive source of funding.

Startup 141
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Should Your Startup Give Performance-Based Warrants?

Both Sides of the Table

As startup entrepreneurs we all want to work with them because having their name as reference clients makes it so much easier for marketing, PR, selling to other customers, fund raising and even recruiting. Future investors aren’t likely to mind that you had a PBW program because the dilution will be taken before they invest.

Warrant 298
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How Open Should a Startup CEO be with Staff?

Both Sides of the Table

In the startup journey if you have success in your early product launches, fund raising and PR you’re likely to get “inbound interest” from likely acquirers. Dilution / valuation. I wasn’t expecting this much dilution this quickly.” It is not out of a desire to hide things or be deceptive.

Startup 417
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Should You Share Equity with Consultants?

www.inc.com

Besides the future potential earnings youre forgoing, youre also diluting your own ownership in the company. The offering to a consultant may affect your securities compliance in later offerings and will certainly add to further dilution to founders," Durkin says. Learn how from the experts at PR Newswire. Will yours be next?

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The Curse of Over-Capitalization

K9 Ventures

Founders typically get their equity in a company once — at the time of founding and then get diluted with each subsequent round of financing. Then the same company gets encouraged to spend that money to accelerate and to grow quickly, which in turn means it runs out of that money more quickly, and then needs to raise even more money.