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First time founders that are considering funding should be more concerned about the people involved, the terms, and the impact on operations than the specific a
by delano 16y ago
First time founders that are considering funding should be more concerned about the people involved, the terms, and the impact on operations than the specific amount of equity.
Edit: for clarification, care about equity, sure, but whether you're giving away 10%, 20%, 30% of your company is much less important in the beginning than the other things I mention.
- gyardley 16y agoThis is true, but only to a point, and only when compared with a founder's other alternatives. Seed-stage fundraising has never favored the entrepreneur more. In this climate, founders can get a higher valuation for their company from a high-quality set of angels, so 'ouch' seems pretty appropriate to me.
- delano 16y ago$90k+ for 27% is a higher valuation than most alternatives, particularly the alternatives available in Europe.