> If your growth rate is already 7% with the pay-up-front model, that's better IMO than getting, say, an 8% growth rate with the pay-after model. That 1% diffe

> If your growth rate is already 7% with the pay-up-front model, that's better IMO than getting, say, an 8% growth rate with the pay-after model. That 1% difference per week makes a huge difference in a year. A startup growing at 7% a week it is 34x bigger at the end of the year, but at 8% it is 55x - or 62% bigger. And at 10% it is 142x - or over 4 times larger than the 7% growth rate. >> no company can catches up to 7% growth, so wasting your equity on 8% growth just makes you poorer, and the VCs richer. Not true, since a company takes the VC money to achieve the higher growth rate, will catch up precisely because of the exponential impact of that 1%. With a 10% growth rate they will be far ahead of you, and capture a bigger slice of the market, even after starting later than you.