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Two co-founders that give up a total of 15% - 25% to raise $500k - $1M (ideally from well known investors) and never take another dime of investment. That seems
by staunch 16y ago
Two co-founders that give up a total of 15% - 25% to raise $500k - $1M (ideally from well known investors) and never take another dime of investment. That seems like the best balance all things considered.
Your odds of success are much higher, and your opportunity to exit (if you want to) at a low price is still there.
1) You can still accept a relatively low acquisition price.
2) Your share is still 37% - 43%, which is a huge chunk.
3) You have investors that will help with acquisition offers/hiring/partnerships, etc.
4) You can afford to pay for things that significantly accelerate your growth, that you would otherwise shy away from.
5) You're instantly full time (compared with a day job, or consulting work on the side).
6) Other companies/people will take you more seriously because you have investors.
- dasil003 16y agoYeah that sounds good. However I think there are a lot of ideas where a solo engineer could hack out a prototype over 6-12 months and significantly increase the pre-investment value of the company. I guess it depends on the type of product and the hacker's skillset.