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VC loses $70k

• loceng 14y ago
  VC loses half the equity they would get otherwise..
  • ridruejo 14y ago
    The equity is insignificant, specially for the top startups. What those 20k buys the VC is first-hand knowledge of what is going on with the company and (hopefully) a better chance to invest additional money when/if the company takes off.
    • loceng 14y ago
      Of course, though it's still half of what they'd get before. That is better for the startup. Don't take more money than you need, unless you're getting a really good deal - though then you could burn and piss off VCs and may look bad during future rounds.