Some interesting ideas in there but the table showing ownership is a bit misleading. It compares owning 85% of a $10 million dollar company (bootstrapping) to owning just 15% of a similar $10 million dollar company (outside investment).
Nowhere does it acknowledge the value of the investment - in this table it's as if the investor hands the entrepreneur a wad of cash, the entrepreneur lights the cash on fire, and when it's all burnt out they draw up the table. :P
I'm no expert either, but from what I've read by the end of multiple rounds, they could own that much. Right out of the gate a 20% or 30% is more common.
As a company comes back for more rounds of funding, the founders get diluted. The VCs often have anti-dilution provisions in there to protect against this - something to watch for.
I'm surprised this article didn't receive more attention here. Its author could hardly be more qualified to speak on the topic of software startups: he built a multi-million-dollar software product not once, but twice. I found the article to be densely packed with insights, as if he were trying to dump everything he'd learned in one session. I intend to return to it and try to absorb more.
Nowhere does it acknowledge the value of the investment - in this table it's as if the investor hands the entrepreneur a wad of cash, the entrepreneur lights the cash on fire, and when it's all burnt out they draw up the table. :P