Founders are the lifeblood of the US startup ecosystem, driving innovation and solving hard problems. However, understanding equity dilution is crucial for reaping the best rewards. Our General Partner Kelly Perdew shared insights on navigating this complex process, breaking down the impact of initial equity distribution, employee stock ownership plans (ESOP), funding rounds, re-vesting schedules, SAFE and convertible notes funding, founder ownership augmentation, and liquidity strategies. Flip through the slides to see the basic components of founder dilution, and dive into the details in his blog post here: https://lnkd.in/dtSeR6d7 #startups #innovation #leadership #venturecapital #founders #equity #equitydilution #liquidity #ESOP #stock #VC
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Funding rounds are a big deal. They validate your vision, boost your credibility, and create a great opportunity to start building a presence in the media. The problem? The media is inundated with pitches from companies just like yours. How will your news stand out? Download our free ultimate guide, checklist, and worksheet to help you map out all of the essential details you need to secure press for your next round. We’ve spent more than 20 years helping companies at every stage of business announce funding, M&A, and IPO news - representing a combined value of $2.5B - and counting. Download the guide here: https://bit.ly/3QdUBp1 #fundinground #venture #venturecapital #angelinvestor #startup #vcfunding #startupgrowth
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Have you fallen into the valuation trap? One of the biggest mistakes I see early-stage start-ups make is locking in a valuation before they have the traction to back it up. At the pre-seed stage, setting a firm value can be risky—you’re either undervaluing your business or scaring off investors with uncertain projections. Instead of giving away too much equity too early, consider using SAFEs, Convertible Notes or ASAs to raise capital initially and defer valuation until you’ve proven your growth potential. This strategy not only protects your ownership but aligns investor interests for the long-term. Don’t rush into the valuation trap—focus on building, and let the numbers speak for themselves when the time is right. 🚀 #founders #preseed #startups #raisinginvestment #newableadvice
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Managing a startup’s equity ownership structure is critical for its success, making cap table management an indispensable process. A cap table outlines the equity stakes held by each shareholder, ensuring clear communication with potential investors and partners. As startups grow and stakeholders increase, effective management of equity becomes vital. Here’s a look at the top cap table management tools in 2024, designed to help you navigate this complex landscape with ease and precision. #startups #Corestrat #CorestratVentures #EquityManagement #CapTable #Investing #Growth #BusinessTools
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In addition to developing great products, founders need to grapple with the challenges within their business. One of those challenges is minimizing their cash outlay, while not compromising on their promise to customers. Burn rate is an indicator for early stage businesses to show how fast they’re spending cash to fulfill business operations. Since investors prioritize capital efficiency, they’re more inclined toward businesses that seek to keep burn rate low, thereby maximizing potential returns. Are you spending too much money on activities with limited return on investment? Reach out to us today! #innovation #startups #founders #angelinvestor #technology #venturebuilding #funding #VB4A #earlystage
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SEED FUNDING, SERIES A, B, C and D. Things investors look for: 1/. Founders’ intelligence, founders’ abilities, their own investment in the concept they are building, and growth strategies. 2/. Details to numbers, knowledge of their market. 3/. Exit strategy, what’s their ultimate exit plan aka ROI. Happy to share what I learned from an investor in early stage startups. #innovation #investments #startupfunding #business
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We recently pitched to a VC for pre-seed. Their response? "Exciting space, but we’ll skip this round." Translation: "We like it, but not enough to invest." So, If VCs can't trust the idea rn, why to offer them next round ??? Innovation happens now. Not during "next rounds." While VCs wait, we execute. While they pause, we grow. Excitement alone doesn't drive change. Action does. To all the founders hustling - keep pushing, no matter what. Execution builds the future. PS - We have got positive response from many investors too, would be sharing the news as we get the funding ! 😅 #startup #investor
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We host open office hours at Outlander VC where 6-8 founders pitch our team in front of each other. Here’s why: - You can’t validate from a pitch deck - Actually spending 15 minutes with a founder tells you more than any email ever could - Founders have the chance to learn from each other & connect offline after the call #venture #vc #investing #founders #startups
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It was 2013, and I was on a call with a potential angel investor. He asked me to send a cap table. I said I would. We hung up. I googled what a cap table is. Such is life as a founder. Figuring things out as you go along. For us at Oyster Bay Venture Capital Cap tables are now our daily bread and butter. And having a bad one can make your company unattractive. I know — since my own cap table was pretty much not fundable. 5 co-founders of which only 1 was active in the company. Over 20 individual shareholders with no pooling agreement. If you are in this spot as a founder — and you are the active one — stop. Renegotiate your cap table with your co-founders and angel investors right away. No institutional VC will invest at a seed or Series A round, if the founders don't own significant shares of the company. At Oyster Bay, this is roughly what we like to see: ✅ before the Seed stage: founders own 80-100% of the company ✅ before the Series A round: Founders own more than 60% of the company ✅ before the Series B round: Founders own more than 50% of the company ❌ To turn this around — a Series A, where the founders own less than 50% of the company is something that we have a hard time accepting. Exceptions prove the rule. This is key for us as we are convinced that founders are the key to building great companies. There are certain make-or-break decisions only founders can take. IF they own a large part of the company, they will actually have the power to take these decisions. #Startups #Founder #Growth #Success #CapTable #AngelInvestor
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Founders, here's a reality check: investor meetings don't equate to investments. Until the funds are wired into your account, those meetings remain inconsequential. While it might sting a bit, it's crucial to understand that everyone is a gangsta until they have to cut a check. In the startup world, true bragging rights are earned through dollars, not mere calendly confirmations. #startup #founders #venturecapital
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THIS is what investors look for in pre-seed founders 👇 👉 Trust, self-aware and honesty. (Growth Mindset) 👉 Know their strengths and weaknesses (Hyper-reality where it counts)) 👉 Understand how they fit into their industry. (Founder-market fit) 👉 Can prove demand through early revenue/traction indicators, often in an unscalable way (Hustle/grit) At this stage you don’t have much of a product to show, so it’s ALL about you, your team and showing some sort of traction. In this economy and with the comparatively low risk appetite of investors, that final point on proving demand through revenue is massively important. Founders who have secured funding, is there anything you’d add? #Startups #VCFunding #SeedFunding #VentureCapital #AngelInvestor
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