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Dave Taylor gives a few simple clarifications on Venture Capital and provides some good links to read more about it:
A common scenario, however, is for a VC to buy 20% of a company, where that might look like this:
• pre-money company valuation: $5 million
• VC investment: $1 million
• post-money company valuation: $6 million
• founder equity stake: 80%
• VC equity stake: 20%
















Startup Fever » Blog Archive » How Much Equity Does a VC Take When Funding a Startup? on November 30th, 2005 at 4:36 pm
[...] Tip of the had to Tim Grahl. [...]