Both Sides of the Table
FEBRUARY 8, 2016
The startup industry may be “resetting,” which doesn’t mean a “crash” but rather just a resetting of valuations, timescales, winners/losers, capital sources and the relative emphasis of growth rates vs. burn rates. Optimize for a W more than % dilution in these circumstances. Start early.
Hunter Walker
NOVEMBER 25, 2022
It’s also a reminder why keeping your personal burn rate low is such a career expanding move. If your personal burn rate floor is high because you’ve been living off a Google salary and can’t imagine how you’d survive earning less, you won’t find most seed stage startup offers to be competitive in the near-term.
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Both Sides of the Table
JUNE 17, 2017
70–80% of the costs of most startups are employee costs so what you’re really talking about when a company is unprofitable is that they are growing their staff ahead of their revenue. They don’t want high burn rates but they will never fund slow growth. Stock option grants dilute your ownership in the company.
Both Sides of the Table
MARCH 9, 2013
Should you increase your burn rate by adding 2 senior hires who will help you ship faster or sell more but then have less time for fund raising? Should you raise $3 million in stead of $2 million even though it means more dilution so that you will have a longer runway? Who the f**k knows? Or firing people.
abovethecrowd.com
APRIL 20, 2016
All Unicorn participants — founders, company employees, venture investors and their limited partners (LPs) — are seeing their fortunes put at risk from the very nature of the Unicorn phenomenon itself. And there are also modern examples of investors beating the founders and employees out the door.
Both Sides of the Table
MAY 9, 2011
Conventional wisdom says that you gain far more in working as a team than you lose by diluted by half before you start. like how much burn rate), whether to sell the company, etc. Startups have high failure rates. Most senior employees who join are given 2% if they join early. Publicly call them a co-founder.
dondodge.typepad.com
JANUARY 15, 2011
Community is more powerful than money or technology » August 11, 2007 How much equity for investors and employees? How much equity should I grant to early employees? The second and third rounds of funding take additional shares of equity and dilute existing investors and founders. Should I take Angel or VC money?
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