Raising funding can be very powerful for startups as they grow, but if structured badly, this can end up being a ‘poison pill’ and kill your startups ability to grow by limiting how large a startup can possibly get. In short, making your startup “uninvestable"
Kevin Brockland, Founder & Managing Partner of Indelible Ventures, helps breakdown why founders need to be careful about how equity they give up when raising funds, how to rectify this and optimize your investor base (and investment terms), and other common mistakes founders make when raising funds.
Kevin also explains the typical equity amounts that are given up during the different stages of the fundraising journey and how much is too much at different points, how SAFEs (Simple Agreement for Future Equity) can impact your ability to raise funds in the future, the consequences of excessive dilution for founders (including losing control of your company), and advice for first-time founders.
Image Credit: Shutterstock