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VC-istan is no longer real entrepreneurship. VC's have set themselves up as between-companies executives who get to dip their fingers in tens of pies. If you do
by michaelochurch 13y ago
VC-istan is no longer real entrepreneurship. VC's have set themselves up as between-companies executives who get to dip their fingers in tens of pies. If you don't accept their term sheets, they can't fire you per se, so they'll just fund your competitors and put you out of business.
- greghinch 13y agoThis has not been my experience in recently helping build a startup and seeking VC money (that they are overly exploitive), but perhaps we had more realistic expectations going in. Anecdotal surveying amongst prior founders that came in as mentors during our recent accelerator stay suggested that at a typical $20-50mil exit (an average "successful" tech company sale), "unproven" founders should each expect to have 3-5% in equity remaining. That's after 1-2 seed rounds, and at least A and B rounds. Terms significantly improve for "proven" founders.
- michaelochurch 13y ago3-5%? After Series B? Dude, you got fucking robbed. That's all I'm going to say.
- greghinch 13y agoI'm not there yet. I'm saying that's a typical number I got from founders who exited at that point. Out of curiosity, have you ever gone through the process of building a funded company yourself?