Dilution Revenue Syndication 
Both Sides of the Table
FEBRUARY 25, 2010
We were trying to optimize around a few criteria: price, size of round, number of syndicate partners and, of course, terms. But we weren’t optimizing for dilution – we were building a $1 billion+ company and we wanted the runway to succeed. We ended up agreeing a term sheet for $16.5 million at a $15 million pre-money valuation.
View from Seed
APRIL 30, 2015
If they can’t, then we want to know more about the existing investor syndicate, so we’re not the only ones at the table. Traction and revenue? Typically, the gross margins aren’t there compared to software, so revenue isn’t quite as important in the early stages of getting to market. NVV: Is there any dilution?
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David Teten
JANUARY 19, 2021
More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. Flexible VC 101: Equity Meets Revenue Share. By tying payments to actual revenues, founders and investors remain aligned around the company’s real-time performance, good or bad. Flexible VC: Revenue -based. Of the Inc.
www.paulgraham.com
APRIL 28, 2010
There never has to be atime when you have no revenues. Some angel investors join together in syndicates. Whatkind of anti-dilution protection do they want? The angel now owns 200/1200 shares, or a sixth of thecompany, and all the previous shareholders percentage ownershipis diluted by a sixth. Hell if they know.In
Lightspeed Venture Partners
SEPTEMBER 21, 2013
Despite having over 500k downloads and making $450k in revenue over the last 21 months, he had only $185k left in the bank, which meant that he would be out of business in 90 days if he didn’t raise more money. pre money valuation seems big, the actual implication is only between 5% and 10% dilution since the round size is small.
View from Seed
JUNE 30, 2015
Over a third of our investments happen pre-product (so by definition, before PMF), and two-thirds are pre-revenue. For a marketplace or ecommerce business, you need to be doing well north of $5M in annual revenue or GMV to get an A round done. FWIW, at NextView, we invest from inception to strong PMF.
View from Seed
JANUARY 26, 2016
Just yesterday, for instance, we saw a company raising a seed round that has no product and two founders … and we also saw a company raising a seed with hundreds of thousands of dollars of monthly revenue. Third, founders at this stage have an incentive to minimize dilution at the point when their equity is the least valuable.
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