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Fundraising Debt And How To Avoid It

YoungUpstarts

Ten years ago, Ward Cunningham published a Youtube video that introduced the concept of “technical debt” to the world. But “fundraising debt” comes into the picture when you raise too much too early, diluting your business at the beginning of the venture, with no real plan or unrealistic projections for how your business will scale.

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Should You Co-Found Your Company With a Software Development Shop (2 of 2)?

David Teten

I’ve talked with a number of software development shops who are eager to get into the business of cofounding companies, i.e., getting product revenue and equity instead of just consulting revenue. The question is: how should they be compensated when cofounding a company? equity that belongs to departed cofounders)?

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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

Our categorization is not a technical one. This structure allows for alignment on the front end, and real-time flexibility for performance metrics,” says Samira Salman , a family office investor and advisor. . Yes, via conversion rights at a valuation cap. Yes, via conversion rights at a valuation cap. Cash collateral.

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The What & Why of Hiring a Great Startup COO

View from Seed

For most of my career, I’ve served startups and early-stage companies as an operating executive or advisor. So when founders lose focus, they dilute their power and effectiveness, which diffuses the force of their impact. This is why I encourage almost every startup founder to find a partner or a cofounder. How to Choose a COO.

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Solo Co-founders

K9 Ventures

However, it is also important to realize that bringing on a co-founder is often the single most dilutive event for a founder (almost often worth it, but still true). Have the conversation. Having the conversation at a minimum ensures that there is an awareness and a shared understanding of the this load. Hire to offload.