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You'll have gone through some pretty insane fundraising rounds and extreme growth then near-collapse to pull those numbers off. Raising 2M at 14M puts the OP's
by mseebach 9y ago
You'll have gone through some pretty insane fundraising rounds and extreme growth then near-collapse to pull those numbers off.
Raising 2M at 14M puts the OP's stake at 87.5%. Long long way to 10%.
- gkoberger 9y agoNot really. $14M vs $100M is an order of magnitude difference. By the time you hit $100M, there's a lot more than just dilution. There's early employees, an option pool (~30%), down rounds, advisors, etc. And, there's liquidation preferences – someone with only 10% could have a 2x liquidation preference. I'm not saying it's likely, but it's also not insane to think they'd only end up with $10M out of $100M.
- codingdave 9y agoYou are arguing over the wrong details -- taking anything percentage of anything right now is worth more than owning no percentage of a failed startup many years from now. Because if he can't raise money, and can't support the growth without money, that is really what we are talking about here.