VC Cafe
FEBRUARY 27, 2024
To reduce the impact of dilution, the expectation is that startup valuation should more or less double between the pre-seed to the seed, and seed to series A (ideally backed by reasonable traction/ revenue multiples). That’s yet another reason for micro funds to move earlier in the fundraising timeline.
Up and Running
JULY 2, 2014
of our company in exchange for the $300K, and my business partner and I each diluted from 50% ownership down to 33.3% ownership and never dilute. When fundraising for a startup, all investors dilute as additional investors join in on the deal. The deal we made with him was he’d get 33.3%
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Both Sides of the Table
APRIL 27, 2010
My company had raised venture capital in April 2001 but we were told that there may never be any more coming. I learned how to better run a product management process. I learned how to integrate customers into our product development process. So how did I come to work in the world of venture capital?
David Teten
AUGUST 19, 2019
I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. RBI normally requires founders to pay back their investors with a fixed percentage of revenue until they have finished providing the investor with a fixed return on capital, which they agree upon in advance.
Business Plan Blog
OCTOBER 4, 2013
Aligning the Startup Team Strategy with the Capitalization Strategy. The single most important factor to raising capital for any tech startup is the management team. This is true for early stage funding as well as venture capital funding. Having too many co-founders will only lead to your eventual dilution.
Startup Professionals Musings
FEBRUARY 13, 2013
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. Money has always been tight for high-tech entrepreneurs who need to raise capital from investors willing to gamble on a new idea.
David Teten
OCTOBER 1, 2015
I’ve seen a range of options for supporting entrepreneurs, which I can rank from least to most involvement in companies by investors: financier VCs, e.g., Correlation Ventures. portfolio operator VCs, e.g., Andreessen Horowitz, ff Venture Capital, First Round Capital, Google Ventures. mentor VCs, e.g., most VCs.
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