Earlier quoted context omitted.
Thank you, that makes sense. Btw is PMF = product market fit in this context? > They fund because you are able to convince them somehow that you are building a unicorn. I'm admittedly very naïve about this, but do they really expect this all the time? (Especially in physical and non-digital markets?) If you have a healthy growth and projection but no plans to say exceed 100M are you limited by how many VCs are intere…
The big VCs typically will expect extreme growth, because the big wins are needed to make up for the losses they will incur on many of the their other portfolio companies. That said, there are smaller VCs and private equity firms who will be happy to fund companies with lesser aspirations. Just don't expect comparably big valuations and you'll likely need to cede more control for less money.
Show HN: Startup funding simulator
111–120 of 168 posts
Re: Show HN: Startup funding simulator
#112Earlier quoted context omitted.
Thank you, that makes sense. Btw is PMF = product market fit in this context? > They fund because you are able to convince them somehow that you are building a unicorn. I'm admittedly very naïve about this, but do they really expect this all the time? (Especially in physical and non-digital markets?) If you have a healthy growth and projection but no plans to say exceed 100M are you limited by how many VCs are intere…
"do they really expect this all the time" This is an interesting question. I don't know if they believe but they def want to believe because without unicorns, they won't survive as most startups fail or have mediocre returns which is not enough for VCs to justify to their own investors/LPs.
Re: Show HN: Startup funding simulator
#113How about if we go for an IPO and then generate profits?
Re: Show HN: Startup funding simulator
#114Re: Show HN: Startup funding simulator
#115You need to add debt. For example, bridge loans. Or even “can we do this without selling equity”
Re: Show HN: Startup funding simulator
#116Earlier quoted context omitted.
Probably the annoying taxman who takes 20% of your $infinity, which just so happens to also be $infinity.
I think if someone takes 20% of your infinity you are still left with infinity?
Re: Show HN: Startup funding simulator
#117Nice tool, but if your goal is to help people understand, some more information in the UI would be nice; I can click "add safe" - what does that mean?
I don't understand what Val(post) is, what 10% options actually means (who gets the options?) what "Other pro-rata" means, etc.
Re: Show HN: Startup funding simulator
#118Re: Show HN: Startup funding simulator
#119Breaks after Series G
Re: Show HN: Startup funding simulator
#120I've literally abandoned my founding dream because of the complication and lack of visibility I was dealing with. This could have been a game changer for me! Keeps us updated with you work pls Ready to provide dev assistance
The complications are intentional. It doesn't need to be this way, but the job of a VC is to screw workers out of as much money as possible, as quickly as possible. Complex deals are one tool in the toolbox.
Most terms are pretty standard now. And most of them have good reasons for existing — usually to align the founders and investors. Just because a term is complex and could benefit the investor doesn’t mean it’s meant to mislead.
But, I’m interested in some examples that might shake my opinion about up!