Posted by Alumni from TechCrunch
September 28, 2023
Over the last couple of months I've spoken to a number of early-stage investors ' both angels and VCs ' who seem to be proud of having been able to take 25-30% of a startup's equity in an early-stage funding round. In one case, an angel investor patted themselves on the back for 'managing to convince the founder to give them a 41% stake.' I was reminded of that several times as I was in Oslo this week, speaking with a number of players across the startup ecosystem. TL;DR: If you are reading the above and you wish that you, too, could command that level of ownership stakes in a startup, I've got some bad news for you: you are being short-sighted, and you are hindering the startup, the founders and your own chances of finding success. Founding a startup is hard. That means investors should help, not set up a situation in which the founders of a startup are disincentivized and demoralized, and won't be appropriately compensated for their hard work in the case of an exit. And that's... learn more
Anonymous
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