Ownership matters. If you end your startup journey with a $50 million exit and own 60% of the company, you make $30 million dollars. But if you have raised a ton of money and own just 5%, you need a $600 million exit to make that same $30 million. Much harder to get to.
A $600 million exit means you have a $60 million revenue trajectory with reasonably fast growth.
Whereas a $50 million exit can be scored off a $5 million, fast growth revenue trajectory
Be careful about mindlessly chasing venture capital.
And even if you are offered funding, consider whether or not to accept.
In the age of ultralight startups and solo entrepreneurship, you would have many more Exit options early on if you remain lean and efficient.
The game is going to change. Play it intelligently.
If you need help with Funding and Exit strategy, join 1Mby1M Premium for close mentoring.
Sridhar Vembu, Founder of Zoho, has kept 100% ownership. This is an extreme, but he has built a billion dollar revenue company with no dilution.
Remember, Entrepreneurship = Customers + Revenues + Profits.
Financing and Exit are Optional.
How much ownership do you aim to keep?
How much dilution do you wish to take?
Does your Market support a large Exit?
Or a small, early Exit is your best bet?