4 ms·
One of the major reasons some of the funding rounds are so big is that a large chunk of the money is going to buy equity directly from the founders rather than
by axiom 15y ago
One of the major reasons some of the funding rounds are so big is that a large chunk of the money is going to buy equity directly from the founders rather than going into the company.
- joshu 15y agoNot on the seed or A round they aren't.
- axiom 15y agoI've seen a couple of cases locally where founders took a bunch of money in the A round (specifically I'm thinking of Kik.) I guess I don't have much more than anecdotal evidence though.
- chunkbot 15y agoSorry, but no.
- fraserharris 15y agoYou have no idea what you are talking about. VCs wanted a larger % cut, team didn't want the dilution. Founders still drive the same crappy cars. http://techcrunch.com/2011/03/29/ted-livingston-kik-velocity-donation/ http://techcrunch.com/2011/03/29/ted-livingston-kik-velocity...
- axiom 15y agoSo the 7M raised was ok for dilution, but that last 1M was just too much to bare? Just because it's in a press release doesn't make it true.
- fraserharris 15y agoExpectations are a bitch. Once you set them, its hard to undo. I sold personal shares because my co-founders didn't want to be diluted by another 1%. And Ted's a friend, the press release was for your benefit.
- enjo 15y agoI had the opportunity to take money off the table on an A round. I was surprised as anyone.