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I have a promising start-up, with several hundred users in specific geographic locations. I will need "$4.6m" to scale, and I want to take out $1m for the cofou
by ldar15 15y ago
I have a promising start-up, with several hundred users in specific geographic locations. I will need "$4.6m" to scale, and I want to take out $1m for the cofounders.
In our market, 32,000 such companies launch each year, and of those, only 250 generate more than $200,000 in revenue. Only 30 generate $20m.
What is a fair percentage to offer the VCs?
Yes, I appreciate that there are many differences between bands and start-ups, but if, as she says, only 250 of 32,000 albums sell more than 10,000 units, then this $10m the record company makes from her band must go, in a large part, to cover the costs of funding all the bands that dont make it. Maybe they are still making a handsome profit, but its not as unjust as she makes out.