There's obvious survivorship bias here, but on the other hand there's something worth listening to--early stage valuations have gotten so high that it's easy to raise a lot of money without thinking about how much you need it.
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If you let your seed round creep up to 25-30% dilution, and your A round get to 20-25%, and your B round get to 20%, and throw in an accelerator or a pre-seed round, at some point you will look at it all and say "huh, I wish I had been more disciplined".
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Hold on to ownership as much as you can, except when it comes to being generous with employees. Those percentage points will hopefully be worth a lot some day!
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Subjectively, it feels like companies today dilute about 2x as much to get to the relative level of progress as companies from 10 years ago.
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Why is this important though? So you have more of a return on exit? Or so you have greater negotiating power in later rounds? Or something else?
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more equity for employees is the most important reason
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Conversely: don't artificially increase your valuation just to reduce dilution. Just raise what you need with a small buffer if you're wrong. Then, get scrappy. Back in '09, we had fewer funding options & leverage but because we raised so little we all had to be disciplined.
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I remember wanting to raise a Series A round ($3-4M at the time). Of course, I failed. So, we took a bridge round of $1.25M to not appear like total failures. In the end, we had 75% of the money left by the time the next Series A occurred 2+ years later--only gave up 10% vs 20%.
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I too wish I was richer
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