Comment pouvez-vous minimiser la dilution des startups lors de la levée de capitaux?

📈 Valuation: Taming Startup Dilution! 💰🚫 🏆 Negotiate Wisely: Secure the best valuation based on your startup's worth. Example: Uber negotiated a high valuation due to its disruptive potential. 💡 Valuation Types: Understand pre-money, post-money, and fully diluted valuations. Example: Facebook's early valuation discussions were pivotal for minimizing dilution. 📊 Fully Diluted Matters: Calculate dilution using fully diluted valuation for accurate ownership representation. 📚 Educate Yourself: Learn about valuation methods and investor expectations. Example: Snapchat's founders studied valuation concepts to protect equity. 📢 Communication is Key: Transparently discuss valuation with investors to align interests.

I always ask founders what they support their valuation with. There are many startup valuation models, so choose the ones that work for you. The more you have in hand, the better your negotiating position. The same is true if another VC has given you a term sheet. Valuation is a double-edged sword. Too high will significantly raise the bar of making it rise to the next round. A low one will make it break the cap table. You need to know your limits to come out of the negotiation with a defensive hand. Sometimes, a good negotiating tactic is to offer a valuation proposal to the other side. You can automatically reject one that is too low. You may also find that the investor can pay a higher price than the one you have in your mind.

It is in Founders' interests to sell equity at the highest possible valuation. However it's a double edged sword. At the earliest stages of the company, valuation is based on forward looking projections. For any number of reasons, things can go wrong along the way- missed growth targets, pivots, shifts in sector sentiment. If your valuation is too high you may be forced to take in more capital through convertibles or accept a downround. These events inevitably force dilution.

Too many factors here. But the VC is also aware of the same. So will not really work. Structured notes : higher achievements rewards etc etc. One way is get family offices to invest. They are happy with lower stakes. The other ideal way is getting strategic investors and not pure financial investors. That way the investors look forward to a strategic match and not only financial returns.

The valuation has to be reasonable given the industry the company operates in, the stage of the company, the problem it solves, the expected growth and future cash flows. If as a founder you ask for a top notch valuation, your investors will raise the bar of your milestones and ask for a flawless execution to reach those milestones. As a founder you have to understand if that’s a pressure your company can handle easily given its current stage.

💼 Choosing Investor while Minimizing Dilution ! 💰 🕵️ Choose Wisely: Select investors aligned with your vision and values. Example: Airbnb chose investors who shared their belief in the sharing economy. 💸 Fair Terms Focus: Beware of excessive demands like high valuation caps or liquidation preferences. Example: Dropbox sought investors who offered reasonable terms to protect equity. 📜 Instrument Insight: Consider convertible notes or SAFEs for founder-friendly financing. Example: Y Combinator popularized SAFEs for startup funding. 🤝 Value-Adding Allies: Seek investors who bring expertise. Example: Slack partnered with investors who offered strategic guidance. 💬 Transparent: Keep open about startup's goals and expectations.

In my experience the choice of the right investor trumps the "valuation number". Understand the valuation logic of the investor, being DCF, multiples, etc. Get to know them, are they going to provide you with valuable advice? And most important, are you going to listen to their advice? That is the key question, do you value them at the moment when your company will have challenges? Ask the investor if you can speak with companies they invested into that (ideally) failed.

Após ter participado de dezenas de rodadas de investimento em diferentes papéis, como empreendedor, advisor e investidor, separo algumas dicas para quem quer escolher melhor seus investidores: - Não se trata apenas de dinheiro: a rede dos investidores e a capacidade dele também aportar smart money pode economizar os recursos financeiros aportados. - Converse com outras investidas dos candidatos a investidor: as promessas se confirmaram? Práticas lesivas surgiram depois? - Avalie bem o destino do capital: muitos investidores acabam pressionando as investidas a gastar dinheiro mais rápido do que o necessário. Isso pode ser positivo se o destino forem investimentos que geram valor, mas pode trazer a necessidade de novas rodadas mais rápido.

Use SAFEs as long as possible. Especially in the European Union starting a company and closing equity rounds is expensive. The Pre-Seed/Seed rounds should mostly fund the development of the company, not legal fees. Select investors who understand this.

Early on, SAFEs are a great choice for founders. Later, a single investor or a strategic investor might offer simple and attractive terms. Once you have built some credibility as a founder and fund raiser, VCs will see you as having a higher chance of success and your company's valuation is likely to be higher.

For B2B startup founders, you may get asked about your burn rate and ARR. The reason behind this is to know the Burn Multiple, which indicates whether your startup is capital efficient. Burn Multiple = Net Burn/Net New ARR. Capital efficiency is about squeezing the most value out of every dollar for startups. Spending funds wisely not only allows startups more breathing room without the perpetual chase for more capital, but it also sends a positive signal to investors about the commitment to enduring success. When it's time for another funding round, demonstrating capital efficiency can be a persuasive bargaining chip during conversations with investors.

- Evite a síndrome do dinheiro dos outros. A partir do momento em que o capital entra na sua conta, seja parcimonioso como se o dinheiro fosse "seu", porque, na verdade, ele é. Afinal, você abriu mão de participação para viabilizar o crescimento do restante de patrimônio que restou. - Não caia no oba-oba de investidores que querem que você cresça a qualquer custo e acabam incentivando métricas de vaidade. Para eles, alguns precisam dar certo para que a política de investimento funcione. Para você, a sua startup que tem que dar certo. - Saiba priorizar o que gera valor para o negócio no curto, no médio e no longo prazo. - Não faça ações apenas porque todas as outras estão fazendo. Faça aquilo que gera valor para seu negócio.

Strive to run a fast, lean, efficient company. VCs will know typical expenses in your market and area. Try to be efficient with your use of capital. The better your use of funds, the more investor interest you will have.

Revenue-based financing is a great solution for companies operating under specific business models. Such platforms allow you to raise quick financing without additional dilution. Such financing can not only be an excellent alternative to capital from VCs but also a complement to them. It can also buy you more time to build sufficient traction and prepare for fundraising. There are several revenue-based financing models, so before accepting such capital, understand on what terms it will enter your company, how it will be treated, and what its total cost will be. Startups often underestimate the latter, so avoid making a costly mistake.

It can be a distraction, but if you are in the sciences, consider grant funding. Grant funding is non-dilutive, and it can enable a platform technology for your company. Grants in the range of $50k to $2M are within your grasp for new ideas. This is funding that you can also mention during your raise. It keeps your cap table clean, and it also provides a stamp of approval to your company.

A melhor forma de "financiamento" é ter clientes pagantes e linhas de receita sustentáveis. Encontre formas de gerar valor que justifique uma remuneração o mais cedo possível, principalmente se estiver difícil captar investimento.

Revenue based financing (RBF) can be an attractive alternative selling equity. However, this only becomes an option at series A or later when there are stable, predictable and recurring revenues.

Market standards for dilution in an early-stage funding round range between 15% and 25%. Great teams or those that show excellent metrics can count on less dilution. If you give away too many shares a couple of times in a row, the company will cease to be investable. The later the stage of development, the harder it is to fix mistakes in the cap table, so make sure it's healthy. An excellent tool to fix the cap table or minimize the loss of shares to founders is to issue an ESOP. It counts towards the team's share pool so that it can improve the balance between team and investor shares. Part of the new ESOP can be used to compensate founders. Avoid dead souls in the cap table. Buy out ex-founders who are no longer involved in the company.

More funds can mean more rapid growth. If you are striving to capture market share and have the technology ready to deploy, then a larger raise can make sense for you. The increased market share could make up for the dilution the founders will suffer. If the company has not derisked the idea and market enough, then perhaps it is better to put off some of the capital raise. The more the company is derisked, the higher the valuation.

Another reason to manage fundraisings, achieving operational growth, and dilution carefully is your cap table structure. A broken cap table can render your company uninvestible!

Uma das primeiras perguntas que você tem que fazer é se, de fato, a sua empresa é “investível” e se é esse perfil de empreendedor que você deseja ser. Já vi muitos negócios que podiam buscar crescimento orgânico e saudável caindo na ciranda de capital de risco apenas porque parecia um caminho glamuroso - e natural. Nem sempre é. Grandes empresas cresceram de forma mais cadenciada com outras fontes de capital e financiamento e se tornaram sustentáveis pois focaram no negócio e não na captação.