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Some people have vision and others don't. Especially in small companies it's easy to find those who would rather own the proverbial 100% of nothing. Or 51% of s
by madanella 19y ago
Some people have vision and others don't. Especially in small companies it's easy to find those who would rather own the proverbial 100% of nothing. Or 51% of something small instead of 10% of something great. In capital-intensive startups, like JetBlue and some oil operations, founders are known to raise lots of cash and end up with less than 10% by the time the private rounds are done.
Look at most major public companies, rarely do the founders own more than about 15% by that point. A lot of that is from dilution, from sharing the equity. I would propose that almost none of them would ever have gotten that far if they were afraid to share equity in order to get their project done, the right way, by the right people.