Both Sides of the Table
FEBRUARY 6, 2013
it’s the most expensive dilution you’ll ever face. But not anal if one founder who shares equity graciously with early employees who are treated as “co-founders” My idea startup team is heaving on tech personnel but also has strong product management. Engineering is critical but it is not everything.
David Teten
AUGUST 19, 2019
This structure offers some of the benefits of traditional equity VC, without some of the negatives of equity VC. I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. We have a special program if you are pre-seed and need product development.
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Startup Professionals Musings
FEBRUARY 13, 2013
A grant is not an equity investment, so the entrepreneur doesn’t have to give up a stake in the company either. 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.
ReadWriteStart
JANUARY 27, 2011
And, oh by the way, we also really like the idea of the 1M/1M entrepreneurs building valuation and negotiating leverage through these business development efforts, instead of signing off large chunks of their company in form of equity early on.
Startup Professionals Musings
MAY 19, 2014
A grant is not an equity investment, so the entrepreneur doesn’t have to give up a stake in the company either. 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.
Berkonomics
MAY 13, 2021
There is a fine line between loading the company with too much debt and diluting the shareholders too early with additional equity investments. Here, most experienced board members can help to streamline the process of product development, manufacture, channel management and marketing.
Berkonomics
MARCH 21, 2019
Later stage investors sometimes look for less, since the business has already proven its capability to stay in the game and has already completed its product development cycle, eliminating more risk for the investor. The more you ask for – the more equity you give up. The post-investment value would be $4,000,000.
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