No, your outcome is not binary. See Fred Wilson's latest article: http://www.avc.com/a_vc/2013/03/when-things-dont-work-out.html http://www.avc.com/a_vc/2013/0

No, your outcome is not binary. See Fred Wilson's latest article: http://www.avc.com/a_vc/2013/03/when-things-dont-work-out.html http://www.avc.com/a_vc/2013/03/when-things-dont-work-out.ht... Of course dilution matters. I really don't understand how you can make an argument that entrepreneurs shouldn't focus on equity. After all, as an investor, you certainly aren't suggesting that you should do this. In addition to exits, equity matters for employee compensation, board control and long term commitments. Entrepreneurs should focus on both success and equity. To do anything else is short sighted.