Build Mode: Compensation, culture, and cap tables with Yuri Sagalov, GeneralCatalyst

VC says advisors-for-equity is rarely a good idea - here's why

Yuri Sagalov from General Catalyst shares his contrarian view that giving equity to advisors is usually a mistake. He argues that most advisors don't have time to meaningfully contribute to the business, but the equity you give them is gone forever.

on value delivered as opposed to something much more permanent like giving an equity brand. And there there are exceptions to that. You know? There are situations where, like, advisor like, if you're...

The seed round dilution red flag that makes most VCs pass immediately

Yuri Sagalov from General Catalyst reveals his hard rule for evaluating startups: no more than 20-25% dilution by seed round. He explains why excessive early dilution is a major red flag and discusses the harsh reality that it's extremely difficult to remedy once it happens.

Why 25% founder dilution is the red flag that kills deals

VC Yuri Sagalov explains why founder dilution above 25% becomes a major red flag for investors and why it's extremely difficult to fix once it happens. He discusses how some investors will pass entirely on over-diluted companies because unwinding bad cap table structures requires uncomfortable conversations about people owning less equity.

The harsh reality about startup employees risking everything for equity dreams

Yuri Sagalov from General Catalyst discusses the brutal reality of startup culture - acknowledging that extreme dedication is required to win, while questioning the ethics of asking employees to work below-market rates and long hours for uncertain equity upside. He highlights the tension between founder ambition and employee risk.