5 ms·

From Homeless World Traveling Programmer to Funded Startup Owner

12 points by ZaneClaes 15y ago

mattdeboard 15y ago
This is a naive question but if you've got a funded startup, you're not the owner are you?
- ZaneClaes 15y ago
  When you take funding, you may (or may not) give away part of your ownership stake (aka equity). As long as you maintain more than 50% ownership, you're still the owner... because you have the ability to make a "majority" decision by yourself. So, I'm still the owner, but that may not always be the case (eg. if we take more funding).
  - jpdoctor 15y ago
    > * As long as you maintain more than 50% ownership, you're still the owner* Maybe pedantic, but here goes: If you have given away so much as a single share, the usual phraseology is that you are "part-owner", because you own only a part. Saying "The owner" implies there is only one, which is false. If you declare to the other shareholder that you are the owner, you might find an interesting reaction.
    - ZaneClaes 15y ago
      That's a good point, I suppose. Though, a convertible note structure prevents any dilution at all until subsequent funding happens... but that's getting even more pedantic of me ;)
      - jpdoctor 15y ago
        LOL, fair enough. If we're talking about where the term "owner" fits in the capital structure, then we're well into the realm of pedantic. Good luck.
zerostar07 15y ago
Not directly related to this post, but since when is getting funded the goal, or even a milestone? Businesses have always required some startup capital, which they would find from family, friends, loans, what have you, but people never talk about their loans so fondly as they do about their startup investros.
- ZaneClaes 15y ago
  I think that funding opens up doors to a next-phase of development for a lot of tech people who have previously been bootstrapping. In this light, it is a very logical "milestone" to be funded. The additional resources let us take development to the next level, from a product born out of passion to one which has the capacity to effect wider change. In traditional brick & mortar businesses, funding was a sort of "of-course" step... but now, in the software startup world, there are a lot of shades of gray. Being able to say that you're funded demonstrates a layer of "we're seriously striving for (and can reach) the next level of development."

12 points by ZaneClaes 15y ago

mattdeboard 15y ago

This is a naive question but if you've got a funded startup, you're not the owner are you?

ZaneClaes 15y ago
When you take funding, you may (or may not) give away part of your ownership stake (aka equity). As long as you maintain more than 50% ownership, you're still the owner... because you have the ability to make a "majority" decision by yourself. So, I'm still the owner, but that may not always be the case (eg. if we take more funding).
- jpdoctor 15y ago
  > * As long as you maintain more than 50% ownership, you're still the owner* Maybe pedantic, but here goes: If you have given away so much as a single share, the usual phraseology is that you are "part-owner", because you own only a part. Saying "The owner" implies there is only one, which is false. If you declare to the other shareholder that you are the owner, you might find an interesting reaction.
  - ZaneClaes 15y ago
    That's a good point, I suppose. Though, a convertible note structure prevents any dilution at all until subsequent funding happens... but that's getting even more pedantic of me ;)
    - jpdoctor 15y ago
      LOL, fair enough. If we're talking about where the term "owner" fits in the capital structure, then we're well into the realm of pedantic. Good luck.

zerostar07 15y ago

Not directly related to this post, but since when is getting funded the goal, or even a milestone? Businesses have always required some startup capital, which they would find from family, friends, loans, what have you, but people never talk about their loans so fondly as they do about their startup investros.

ZaneClaes 15y ago
I think that funding opens up doors to a next-phase of development for a lot of tech people who have previously been bootstrapping. In this light, it is a very logical "milestone" to be funded. The additional resources let us take development to the next level, from a product born out of passion to one which has the capacity to effect wider change. In traditional brick & mortar businesses, funding was a sort of "of-course" step... but now, in the software startup world, there are a lot of shades of gray. Being able to say that you're funded demonstrates a layer of "we're seriously striving for (and can reach) the next level of development."