6 ms·
Can you shed some light on what percentage of the company do the investors own now? How did you or they did the valuation? I see the funding numbers everywher
by infocaptor 15y ago
Can you shed some light on what percentage of the company do the investors own now? How did you or they did the valuation?
I see the funding numbers everywhere but rarely see how much equity was given away in the transaction.
- webwright 15y agoMost people are pretty close to the vest with founder dilution numbers. It also tends to be complicated and hard to sum up. Convertible note or priced round? If it's a note, is there a cap, a discount, warrants? Participating preferred shares or no? Liquidation prefs? For a $400k seed round, it'll usually be a convertible note-- nowadays usually with a cap (reading: http://startuplawyer.com/convertible-notes/the-convertible-note-discount-price-cap http://startuplawyer.com/convertible-notes/the-convertible-n...). Here's Fred Wilson's take on Founder dilution: http://www.avc.com/a_vc/2009/02/founder-dilution-how-much-is-normal.html http://www.avc.com/a_vc/2009/02/founder-dilution-how-much-is...