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There's an accelerator here in Taiwan with a model I truly don't understand: 100k usd for 10%. 10%!! You've just valued the company at only 1 million! And taken
by komali2 6mo ago
There's an accelerator here in Taiwan with a model I truly don't understand: 100k usd for 10%. 10%!! You've just valued the company at only 1 million! And taken a HUGE chunk of equity, not much left on the table!
Maybe it makes sustainable sense but in the world of venture capital it seems the most profitable thing to do is lie through a Cheshire grin, every day.
- Saline9515 6mo agoThis is very standard, Ycombinator, which hosts this board, does the same: https://www.ycombinator.com/about https://www.ycombinator.com/about
- komali2 6mo agoNot exactly the same... > YC invests $500,000 in every company on standard terms. Our $500K investment is made on 2 separate safes: > We invest $125,000 on a post-money safe in return for 7% of your company (the "$125k safe") > We invest $375,000 on an uncapped safe with a Most Favored Nation ("MFN") provision (the "MFN safe")
- harmonic18374 6mo agoSo YC values the company at $1.8 million. I don't think that's so different.