3 ms·
Is there anyway you could have bootstrapped the company? My issue with VCs isn't anything you focused on but instead the unfavorable terms. Liquidation preferen
by CryoLogic 8y ago
Is there anyway you could have bootstrapped the company? My issue with VCs isn't anything you focused on but instead the unfavorable terms. Liquidation preference and such.
- jenthoven 8y agoYes - we bootstrapped Kapwing for months before deciding to raise. It wasn't an easy decision, but I think it was the right one for us at this point in our career. I wrote a post on this topic on the Kapwing blog you can check out.
- kenneth 8y agoLiquidation preferences are not unfavorable terms. A 1x non-participating liquidation preference is standard and protects investors against cheap acquihires founders would otherwise be inclined to take.
- paulddraper 8y ago1x non-participating liquidation is not unfavorable. There are unfavorable terms (and historically it has been more common)...but yeah, that's very reasonable.