Re:Founder Dilution - How Much Is "Normal?"
by kubrick on Saturday February 21, 2009 @09:15PM
(#490301)
They're being screwed: after developing a workable idea and putting years of work into it, they come away with practically nothing. If that's "the game" then no wonder founders are turning away from VCs. That's why I'm suggesting VCs change. Stop short-changing the founders. VCs with no founders are not VCs.
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Re:Founder Dilution - How Much Is "Normal?"
by astine on Sunday February 22, 2009 @09:37AM
(#490604)
10% of a million dollar company isn't practically nothing.
Re:Founder Dilution - How Much Is "Normal?"
by kubrick on Sunday February 22, 2009 @08:13PM
(#491106)
It's not much when you a) have to split it 2 or 3 ways, and b) have to watch the VCs take home several times as much, when you did all the work.
My point is that there is a value judgement here. VCs are being overvalued, and founders are being undervalued. This serves to demoralize and demotivate the founders, ultimately hurting the value of the company. It doesn't need to be that way.