dilution

“I mean, best case scenario, you're talking about having your money locked up for probably over a decade, at which point the company has raised so much additional capital that your position could be diluted down to less than half of what it started with.”

“So I would say in the early stages, at least, don't worry too much about valuation. It's a good idea to keep an eye on dilution, but it's better to raise less at a lower valuation and a lower dilution than to raise at a larger amount at a high valuation early …”

“Oftentimes, the valuation doesn't actually matter that much. People try to get another 10 or 20% higher valuation than what they have on the table right now, but you're only raising 10% of that valuation or something like that, so actually it's only gonna make…”

“Founders are selling less equity in rounds than they were in the past. So typical dilution in the past might have been 30%, you know, in a round, and that might have shrunk to 20% in a round today.”

“A lot of times founders who are second and third time founders don't want to even be called to have a pre-seed round because it presupposes you need a seed round. And what does that mean to you, Harry? It means that if you have a pre-seed round and you have a …”

“You don't see a bottom until these things are at free cash flow multiples, net Of dilution. And when that happens, that's your bottom.”

“As a seed investor, I used to think my real entry price was twice what it looked because of dilution. Right now I'm thinking it's four times.”