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- The misunderstood parts of dilution and venture math + Fundraising Fieldnotes 5.31.22
The misunderstood parts of dilution and venture math + Fundraising Fieldnotes 5.31.22
Do you REALLY understand dilution? A viral walkthrough…
Jason Yeh
May 31, 2022
Hey - it’s Jason Yeh 🕺🏻
This is my weekly recap of thoughts I’ve had while helping founders solve their fundraising challenges this past week (5.31.22)
If you have any questions, please reply! I try to get to every comment/question I get :)
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On to the Fieldnotes for 5.31.22…
The misunderstood parts of dilution and venture math
Do you REALLY understand dilution? A viral walkthrough…
I wrote this Twitter thread in reaction to the questions I’ve received from founders in response to the market shifts over the last two weeks.
When @levie's company @Box IPO'd in 2014, he owned just 5.7% of the co
Shocking?
Nope. That's the reality of venture funding + dilution, a reality that will hit MUCH harder in today's mkt
Ready to learn?
Thread on the most misunderstood parts of dilution + venture math 🧵👇
— Jason Yeh (@jayyeh)
1:54 PM • May 27, 2022
It’s clear that founders today are VERY unsophisticated when it comes to dilution planning because… well, it hasn’t made a difference especially these past 2 years when valuations have been sky-high and rising constantly.
As they say, there’s no such thing as a free lunch… and well, it’s time to pay up.
I converted the thread to a lovely essay so click through to read the whole thing and catch these lovely gems:
Background on dilution ⚗️🧪
Illustrated walkthrough of venture math 🧮➗
Insights into my free dilution planning tool 🛠🪚
The big bonus? Aaron Levie responded to my Twitter thread which I incorporated into the essay :) (still amazed that this website is free..)
Smart Twitter Takes
It’s very true and there is a subtle takeaway to take from this… find the least thirsty way to FOLLOW UP.
You’d be surprised how many amazing investment opportunities are lost by investors because of admin.
They just weren’t able to find time to chat.
— Maria Rotilu (@mariarotilu)
11:07 AM • Mar 25, 2022
Yes, and I know that sounds simple, but each of those is a story and the story needs to be told well. THAT is not so simple.
how to pitch your startup by stage:
- pre-seed: "this space is massive and my team was born to tackle this problem"
- seed: "same as pre-seed + look how fast we're shipping"
- A: "same as seed + we hired a killer team and are seeing traction with a scalable product"
— brett goldstein (@thatguybg)
3:15 PM • Mar 30, 2022
Till next week. Stay adamant and be chased.
Jason
P.S. Yes this is me. I’ll blame it on ADHD
In case you missed it…
What should founders expect from the fundraising downturn, and what can they do about it? Read last week's post for more:
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