Re:Xobni raises $4.26M to let you improve your email habits
by Sam_Odio on Wednesday March 28, 2007 @03:07AM
(#6859)
That doesn't make sense for the founders, though.
It would be in their interest to take as little money as possible early on, so that they give up less of the company's equity.
Then - later when the business model has proven itself - and the valuation is higher - take on additional capital.
You'll be giving up much more equity if you take a million in funding in the first round, instead of the third.
The inside scoop is that Vinod sneezed when he was opening his wallet and that's the pocket money he had on him.
Really though I think it's probably so they don't ever have to take another round before they're profitable or exit.