Dilution Seed Capital Startup 
Steve Blank
APRIL 10, 2019
VC’s have just changed the ~50-year old social contract with startup employees. In doing so they may have removed one of the key incentives that made startups different from working in a large company. For most startup employee’s startup stock options are now a bad deal. Why Startups Offer Stock Options.
The Next Web
NOVEMBER 20, 2013
George Deeb is the Managing Partner at Chicago-based Red Rocket Ventures , a startup consulting and financial advisory firm based in Chicago. There are a lot of variables to go into calculating a fair equity split a startup team. So, a fair split, would be closer to 60/40 in favor of the funding founder, when diluted for the cash.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Business Plan Blog
OCTOBER 4, 2013
Aligning the Startup Team Strategy with the Capitalization Strategy. The single most important factor to raising capital for any tech startup is the management team. This is true for early stage funding as well as venture capital funding. Furthermore, a startup works differently than a large corporation.
Startup Professionals Musings
SEPTEMBER 14, 2010
Anti-dilution protection. But some dilution is almost inevitable. You can end up becoming very frustrated with the investors, or cause the venture to fail if you run out of seed capital before the angel round can be completed. Tags: entrepreneur startup angel investment term sheet business. Right of first refusal.
View from Seed
DECEMBER 4, 2014
Editor’s note: Understanding how to divide founder equity at a startup can be tricky, even to the point of reaching emotional riffs between founders. Across both the startups I’ve personally been involved in (PayPal and LinkedIn) and the startups in which I’ve been an investor, I’ve seen a broad range of co-founder equity splits.
View from Seed
NOVEMBER 19, 2015
If the goal of the startup is that you know you want to go as big as possible from the beginning — “unicorn or bust,” so to speak — then raise as much capital as soon as you are able to successfully do so. Do you have the experience, reputation, and network that make it relatively easy to raise seed capital?
Startup Professionals Musings
JANUARY 27, 2012
Anti-dilution protection. But some dilution is almost inevitable. You can end up becoming very frustrated with the investors, or cause the venture to fail if you run out of seed capital before the angel round can be completed. These “IV drip” financings may reduce risk for investors, but put more pressure on founders.
Expert insights. Personalized for you.
335 
Let's personalize your content