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%
David Teten
AUGUST 19, 2019
I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. 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.
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Startup Professionals Musings
FEBRUARY 13, 2013
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. Money has always been tight for high-tech entrepreneurs who need to raise capital from investors willing to gamble on a new idea.
Startup Professionals Musings
JANUARY 2, 2011
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. Money has always been tight for high-tech entrepreneurs who need to raise capital from investors willing to gamble on a new idea.
VC Cafe
FEBRUARY 27, 2024
To reduce the impact of dilution, the expectation is that startup valuation should more or less double between the pre-seed to the seed, and seed to series A (ideally backed by reasonable traction/ revenue multiples). That’s yet another reason for micro funds to move earlier in the fundraising timeline.
The Equity Kicker
MARCH 17, 2015
Twenty years ago 3i dominated venture capital in the UK with a very low touch model. Transparency provided by the internet makes this true at all stages, but it’s especially true at the earliest stages where capital requirements have declined precipitously. Uncategorized Venture Capital'
Startup Lessons Learned
AUGUST 24, 2009
When I reviewed a recent product development book, it immediately shot up to Amazon sales rank 300. And as everyone’s attention starts to focus on those same indicators, their value is being diluted. We faced this same problem in entrepreneurship and venture capital, but we are getting past it. Is that good?
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