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It's a concern, but any amount dilution is better than infinite dilution (i.e. turning off the lights).
by josephruscio 17y ago
It's a concern, but any amount dilution is better than infinite dilution (i.e. turning off the lights).
- fizx 17y agoAssuming zero opportunity cost...
- josephruscio 17y agoSo there is a level of dilution doesn't make sense, but I don't know that a good VC would proffer them. Does a VC no good to close a round and have the whole team walk away. I think this article is talking about situations where dilution is painful, but within the realm of reason. Assuming even a small/moderately sized team, i.e. other people than just the founders are also employed, a good VC will grant new options to employees. The founders get hurt the most. If the VC's want to keep the founders around, then they need to ensure they're properly incentivized as well. In some cases, you can get the deal done to take care of your people. Then unwind yourself and move on.