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Fundraising Debt And How To Avoid It

YoungUpstarts

Of course, a certain amount of initial capital without financial performance is absolutely necessary to get a business off the ground, especially in regulated industries. Founders need seed capital to get their operations up and running, and to begin generating revenue.

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How to Divide Founder Equity: 4 Criteria to Discuss

View from Seed

It’s also worth keeping in mind that regardless of how the founders’ common stock is divided, there will be future issuance of stock that will dilute the founders over the lifecycle of the company. This needn’t be some terribly complex formula that tries to do a cost accounting of everyone’s contribution to the decimal point.

Equity 315
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Punch & Pie: How Should Co-Founders Divide Equity?

Agile VC

It’s also worth keeping in mind that regardless of how the founders’ common stock is divided, there will be future issuance of stock that will dilute the founders over the lifecycle of the company. This needn’t be some terribly complex formula that tries to do a cost accounting of everyone’s contribution to the decimal point.

Cofounder 255
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The Summer Solstice And Seed Stage Squeeze

Haystack

.” 2/ Lateral Competition – The number of “seed” funds has also grown during this boon. More and more seed capital has flooded into the market, making the situation for funding seed rounds ~$2M-ish total size more competitive. Samir Kaji from First Republic has been writing on this for years.

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Punch & Pie: How Should Co-Founders Divide Equity?

Agile VC

It’s also worth keeping in mind that regardless of how the founders’ common stock is divided, there will be future issuance of stock that will dilute the founders over the lifecycle of the company. This needn’t be some terribly complex formula that tries to do a cost accounting of everyone’s contribution to the decimal point.

Cofounder 173
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Five Questions Every Start-Up Should Ask About Accelerators

Austin Startup

I put that in quotations, because, as I’ll expound, there is a start-up industrial complex that is designed to fleece novice founders from their seed capital with predatory fees, terms, etc. If you really need a desk, drive Uber/Lyft for a day and use your earnings to pay for that workspace without diluting your equity.

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Startup Stock Options – Why A Good Deal Has Gone Bad

Steve Blank

And Mark Suster of Upfront Capital has a great post that summarizes these changes. The first big idea is that unlike in the 20 th century when there were two phases of funding startups– Seed capital and Venture capital–today there is a new, third phase. It’s called Growth capital.