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6% is good for the founder too. You want your investors to have a significant stake in the company so that they actually help build it, and you want to take on
by wdewind 13y ago
6% is good for the founder too. You want your investors to have a significant stake in the company so that they actually help build it, and you want to take on investors feeling like they will by definition give you a smaller piece of a larger pie. If you give them too little they wont help you at all.
- nawitus 13y agoIt's cheaper to pay people to help instead of giving equity.
- wdewind 13y agoYou can't afford the investor's time if your investors are people who will really help you. An investor does a LOT more than give you money.
- nik_adhia1 13y agoTom who just commented on this above ^ - he's GoCardless (awesome tech btw!), one of the leading startups disrupting payments/direct debit in the London scene. They've been going from strength to strength and recently raised another huge round. Definitely validation that YC works and gives value.