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There's at least 2 things one should consider: - it's tranched deal - they get 27% up front(!) and invest, in 4 tranches. Some think that's A Very Bad Thing fo
by atirip 16y ago
There's at least 2 things one should consider:
- it's tranched deal - they get 27% up front(!) and invest, in 4 tranches. Some think that's A Very Bad Thing for the founders: http://cdixon.org/2009/08/15/the-problem-with-tranched-vc-investments/ http://cdixon.org/2009/08/15/the-problem-with-tranched-vc-in... and http://www.avc.com/a_vc/2009/08/milestone-based-investing.html http://www.avc.com/a_vc/2009/08/milestone-based-investing.ht...
- after Series A funding the founders are usually guaranteed to be minority stakeholders. Think about that twice.
But, at least they are open about that.