Hacker News new | past | comments | ask | show | jobs | submit login

His numbers are wrong (and he admits as much), but they're really just illustrative anyway. The entire point he's making is that if you're growing quickly, dilution isn't a big deal.

And the VC equity split usually changes by round and market conditions: A is usually 30-35%, B is usually 15-20%, C+ are usually <=10% (this is for a typical startup; Cloudera is a unicorn so the rules are out the window). The general rule of thumb is that founders drop below 50% sometime around the C round. Most VCs are hesitant to dilute founder equity too early because it can hurt recruiting and make it harder to fund later rounds.




Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: