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Podcast: Investor Connect Podcast
Episode: Startup Funding Espresso – Avoid Giving Up Too Much Equity in the Early Stages
Description: Avoid Giving Up Too Much Equity in the Early Stages Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. In the early stages of a company, fundraisers should focus on the minimum amount, not the maximum. The valuation is low, and so the founders encounter greater dilution. The majority of the fundraise should be done later when the valuation has increased. Each round will cost the founder 25% of their equity. Most use convertible notes. Beware of using the convertible note as a credit card in which the founder keeps...