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The part about dilution was interesting. I looked at several tech startup IPO filings and it "appeared" to me that most founders ended up with 4 to 7% in equity
by rokhayakebe 11y ago
The part about dilution was interesting. I looked at several tech startup IPO filings and it "appeared" to me that most founders ended up with 4 to 7% in equity. Also in nearly all cases, there is one VC who owns more than 20% of the company.
- durga 11y agoPretty standard in my opinion. Depending on your negotiability, you're going to get diluted 10-40% in every round. Do that a few times, and you can see where one ends up :)
- sahaj 11y agoBetter to have a little piece of a really big pie, than to have a really small pie all by yourself.
- kzhahou 11y agoKinda pathetic though, isn't it? A group of people devote their lives to a product, working round-the-clock for years, and then reap (relatively) tiny rewards compared to the money man.
- JoeAltmaier 11y agoHey! You've just described the money-sucking machine that is Silicon Valley.
- harryh 11y agoWhat money man are you referring to exactly? Most of the actual money in these situations comes from massive institutional funds where there is no individual man.