Searching...
20 results for “founder dilution”
Concept4 mentions across episodes
dilution
“Why 25% founder dilution is the red flag that kills deals”
that's healthy. Beyond that but and obviously, less is even better, but 25% to me is kinda like the cutoff. After that, I started thinking about, like, why why is it so diluted? Yeah. No. I mean, I w
20:54 / 21:33
tactical advice20:54 – 21:33
...on dilution? Founders would say, god, if you've got two prior fundraisers of cash, you're not optimizing for dilution. That's inefficient. I could not care less for a couple of reason. I would say I'm not being doing this money for money, first of al
35:58 / 37:03
from transcript35:58 – 37:03
with dilution sensitive founders. You kind of meet two buckets of founders at seed stage and you ask them what kind of a round they want to raise and they're like, oh, you know, typical 5,000,000, 25 post round down to sell 20 to 25% of my company, p
49:17 / 50:49
from transcript49:17 – 50:49
“The seed round dilution red flag that makes most VCs pass immediately”
...25% dilution by the seed round. But, like, if they had a pre seed round with some advisers or friends and family and everything else, like, if that bucket is around 20 to 25%, that's healthy. Beyond t
20:31 / 21:13
tactical advice20:31 – 21:13
...founders on dilution today? I would have not raised as big of a series a. Looking back, I think it was too much dilution. Ultimately, it all worked out because, you know, if you're in the company for long enough, you know, there's just a founder re u
28:30 / 29:31
from transcript28:30 – 29:31
...dilution. We think about time. And we love the alignment of coming in very early and hopefully being economically aligned with the founder. And then it's the exact same strategy, exact same thinking as we'll dilute alongside the founder. By the way,
1:08:13 / 1:09:38
from transcript1:08:13 – 1:09:38
...which is dilution. Right? How should a founder think about where to find good guidelines for dilution for early stage, especially if you're doing, you know, this kind of deep tech investing? And, yeah, how should they be thinking about dilution? What
27:40 / 28:47
from transcript27:40 – 28:47
...think on dilution? Founders would say, god, if you've got two prior fundraisers of cash, you're not optimizing for dilution. That's inefficient. I could not care less for a couple of reason. I would say I'm not being doing this money for money, first
35:12 / 36:16
from transcript35:12 – 36:16
...gotta re up founders, and sometimes I think that's very legitimate thing to do because you want them incented. But at the same time, you gotta manage overall dilution.
36:43 / 37:47
from transcript36:43 – 37:47
...not as founders, because I'll ask my question, dilution does creep up on you. Right? As a founder that's gone through this journey, right, did you ever sweat any of this dilution, the IPO dilution, the post IPO dilution? Safe. Did it even come into y
22:26 / 23:34
from transcript22:26 – 23:34
...a 10% dilution. That's a little more efficient than just 30% out of the gate. Can you do more with less? And in this case, it was a founder who was older
32:10 / 33:18
from transcript32:10 – 33:18
...Right? Totally. Complete. And and the employee dilution's high. Right? So that's probably approaching 10% a year in some of these companies. So do what? It's got because I don't have the data, but if you're paying your if the best LM companies are pa
17:13 / 18:16
from transcript17:13 – 18:16
...I love it. Founders giving away too much equity too early on because they don't really understand what are sort of market standard dilution percentages. And and also they don't really understand where they themselves need to maintain a percentage sha
10:25 / 11:35
from transcript10:25 – 11:35
...founders that raise a limited pool you know, use whatever resources they have to get to another limited pool of resources, to get to another limited pool of resources, to so on and so forth, ultimately get to a nice exit. Right? When you don't get to
48:26 / 50:21
from transcript48:26 – 50:21
...with dilution sensitive founders. You kind of meet two buckets of founders at seed stage and you ask them what kind of a round they want to raise and they're like, oh, you know, typical 5,000,000, 25 post round down to sell 20 to 25% of my company, p
48:41 / 49:54
from transcript48:41 – 49:54
...founders kinda take a somewhat simplistic view of, I want the highest pre money valuation possible. Okay. Get this. This is the right amount of money that I need. Okay. That's only gonna be this amount of dilution. Yes. But, you know, if you have a b
46:06 / 47:59
from transcript46:06 – 47:59
...dilution, for example. I was rather like, even in the earlier rounds, I would rather see it at, like, 10% or or less than that. Can you get me sick away for 10%? I mean, I I I would say I don't know what you have to ask that, but I think it's possibl
22:25 / 23:30
from transcript22:25 – 23:30
...dilution is probably Peter Walker of Carter. He shares a lot of data, like, the best in the business, really, I I think. That's awesome. And not all his content. Yeah. So if you want yeah. If you want benchmarks on anything related to to CapTable and
28:27 / 29:33
from transcript28:27 – 29:33
about dilution. We think about time. And we love the alignment of coming in very early and hopefully being economically aligned with the founder. And then it's the exact same strategy, exact same thinking as we'll dilute alongside the founder. By the
1:08:58 / 1:10:03
from transcript1:08:58 – 1:10:03
Have a podcast?
Run your podcast through Clypt
Get ranked clips, hooks, and ready-to-post copy from your own episodes. Free to try.