A friend of mine is working on one of the coolest startups I have heard about in a while. We discussed whether he should have VCs invest in his seed round. He is thinking he may want to have the option to exit early and was curious why a VC wouldn’t want to put in $1 million for 20% of the company and get out $10 million (at a $50 million exit) – a 10X return.
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VC Economics – Why Your $50 Million Exit…
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A friend of mine is working on one of the coolest startups I have heard about in a while. We discussed whether he should have VCs invest in his seed round. He is thinking he may want to have the option to exit early and was curious why a VC wouldn’t want to put in $1 million for 20% of the company and get out $10 million (at a $50 million exit) – a 10X return.