Would also be cool if you have some templates for some typical series of funding rounds all the way to the exit in different industries, which we can just load and see (fantasize about) the possible trajectories.
Show HN: Startup funding simulator
131–140 of 168 posts
Re: Show HN: Startup funding simulator
#132Fantastic project.
Very illustrative for new founders to learn how much revenue they'll need to generate to see any useful return if they raise venture money.
To that end, I'd add some of the more annoying aspects of priced rounds, like liq pref, etc
Re: Show HN: Startup funding simulator
#133Earlier quoted context omitted.
Your infinity is larger though so it's all good.
Not quite, anything subtracted from itself is zero. However, if you send me Infinity bitcoin, I will send you 10 Infinity bitcoin back (I am Expert Hacker).
No, not all infinites are the same. For example uncountable infinites are all larger than countable ones.
Re: Show HN: Startup funding simulator
#134This is a wonderful example of identifying a problem that current solutions overlook. As an emerging company lawyer, this is something we do constantly, albeit in excel form or through conversations with founders. Carta and others are great at creating efficiencies for scale, but sometimes these simple problems go unsolved. Kudos for building this, and never hurts to get lawyer input which might help with development and certain complex challenges! Awesome start!
Re: Show HN: Startup funding simulator
#135To see something new is great to move forward and learn new ways to improve ways of pay means of how we pay means of how we learn how to hire much more is involved and open to learn thanks for the opportunity to be part of this truly amazing
Re: Show HN: Startup funding simulator
#136clean UI. Does anyone know want to share a good general rule of thumb when fundraising and how much equity percentage a founder should have? I want to give it a try with this knowledge
Re: Show HN: Startup funding simulator
#137The Plus button looks like it will add another founder. Couldn't figure out how to get to next step for a while, adding & removing founders. Consider just showing the possible actions right there, not having to click on the buttons.
Also, on landing page, just go straight into the New Startup screen so you don't have to click "New Startup" since there is no other option when you have none listed.
Was looking for a "Run Simulation" button, but it was not at all obvious that I should hover over the blocks added to see the "output". Just show the output on-screen :).
Re: Show HN: Startup funding simulator
#138Earlier quoted context omitted.
Agreed. Adding the employee point of view would make this tool an excellent education piece. It’s always a struggle to explain.
Or, no snark, open their eyes to how little their options are worth.
Are there any companies that share with the employees enough information to run this simulator?
My standard experience has been
-"This offer includes X,000 share/option units"
-"great, how much is that worth in dollars?"
-"well, we can't tell you, but there are Y00,000 shares in total, and the last investor paid $Z million for W% of the company".
"OK, that's very useful. If I assume my shares are as good as the investor's shares, I can estimate my shares' market value. Did the investor get anything else of economic value for his investment? A liquidation preference? Right to invest in future rounds? A board seat? Sweetheart deals with his favourite companies? "
- "Let me check that with Finance"... ... ... "I'm sorry but I can't tell you that"
- "OK, I understand that's confidential. Can I at least get the same deal as him? I'll trust you to give me my extra benefits when they accrue, and I waive the board seat and the backhand deals"
- "Absolutely not."
- "Well then, it's very hard for me to put a value on these shares/ options. Even though I'm willing to take some level of risk in my compensation, and value these close to market value, you won't give me enough information to let me value them at anything other than $0"
- "I've checked with $BIGWIG and actually we can make an exception in this case: we can offer you (X + 1),000 shares/ options. How does that sound? "
- "..."
Re: Show HN: Startup funding simulator
#139Earlier quoted context omitted.
Bootstrapping requires a rare breed of founder who is financially secure enough (or frugal enough) to manage life on a reduced salary, capable of building useful products on a budget, and willing to risk the missed opportunity cost of a cushy Big Co position. In my experience, the hardest thing to master is the actual building - plenty of people are bootstrapping "theoretically useful" inventions in basements/garages…
I don’t know that it’s really that rare. I look around and I see people with the fiscal responsibility, knowledge and ability to get things done in every quarter.
Depends on your circle. Most of my peers have families and mortgages, and don't have inherited wealth or sufficient savings. They are fiscally responsible but bootstrapping a company requires more resources than just being sensible with your money.
Re: Show HN: Startup funding simulator
#140Earlier quoted context omitted.
Or, no snark, open their eyes to how little their options are worth.
I never count options as renumeration. Startups and scaleups may as well promise to pay me with lottery tickets. Cash please, thank you. If you want to talk about using equity to pay me, please come with real shares, and a say in how the business is run, at least in the areas where I have experience and expertise.
You only accept equity as the only pay if you believe in your friend's product and can take the hit when it doesn't work out. Everywhere else I've seen actual cash + options which is a way of saying "we'll pay you for a while and if this works out your options will be your reward for sticking around".