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Why Entrepreneurs Should Be Generous With Investors

YoungUpstarts

As well as how to work with pre and post-money valuations. Your Reputation is on the Line. Though if you have a reputation giving bad deals, you may not have anyone to negotiate with in the future. Not compared to potential customers or lenders. This instantly puts founders on guard, in a defensive position.

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The Silliness Of Recapping Seed Rounds

Feld Thoughts

A company raises $1m of seed money from angels in a convertible note with a $6m cap. Assuming equity is raised at or above that cap, the total dilution, before the new money, is 16.6% (equivalent to an equity financing of $1m at a $6m post money valuation. ” They are running out of money.