Do NOT Dilute Your Equity Too Soon

We see lots of first-time entrepreneurs getting screwed by investors.

50% equity for $100,000 investment is a LOUSY deal.

Watch this inspiring 2 minute 06 second video of how Venky Balasubramanian kept his equity pie more or less intact:

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Can You Compete With Heavily Funded Startups Without Big VC Funding?

There are always competitors who have been longer in the game and who are better funded. But it doesn’t mean they will be the winners in the marathon.

A startup is a marathon, not a sprint.

Gobs of VC money never guarantees a startup’s success. A nimble upstart can beat a well funded competitor with a superior strategy.

Here’s a 1 minute 21 second video that explains further:

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How Did Mark Zuckerberg Preserve 26% Equity in Facebook?

Raising money too soon for a startup creates a number of serious problems.

You get diluted out of your ownership.

You destroy your cap table and follow-on funding becomes complicated to negotiate.

Watch this 2 minute 20 second video to learn how Mark Zuckerberg played the funding game and preserved 26% equity in Facebook.

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How Do You Improve the Odds of Getting Your Startup Funded?

We’ve talked extensively about the alarmingly low probability of getting a startup funded in this video:

We’ve also said that you CAN dramatically increase your odds if you Bootstrap First, Raise Money Later.

Now, watch this 1 minute 41 sec video to learn more about how to improve the odds of getting your startup funded.

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How to Increase the Odds of Getting into YCombinator

YCombinator rejects 97.15% of all applications.

Is there a strategy for raising your odds of getting into YCombinator?

The short answer is yes.

Watch this 2 minutes 11 second video on how Jas Grewal, CEO of CareSkore did it.

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Death by Overfunding

Funding = Success, right? I wish it did. But entrepreneurial tracks are littered with carcasses of dead startups that were very well funded, some to the tune of hundreds of millions. As a case in point, watch this 2 minutes 31 second video: Death By Overfunding.

If you prefer to read instead of watching, read the Nasty Gal story here:
Death by Overfunding: Nasty Gal
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Probability of Raising Funding

I run One Million by One Million (1Mby1M) – a global virtual accelerator for startups. 2017 is our seventh year. And one particular trend keeps me awake at night. Thousands upon thousands of entrepreneurs have approached us for help with their funding at a stage where their chances of getting funding is ZERO. We can’t help them, regardless of how powerful our investor connections are. We can’t help a startup get funding before they become fundable. It pains me to see how many entrepreneurs have no idea what makes a startup fundable.

So, my humble advice to all entrepreneurs: please learn to assess your own probability of getting funded. Watching this 2 minutes 53 second video would be a very good start if you need a crash course in fundability.

Want introductions to Angels and VCs? A fundable and validated business is a must. >>>

Does Entrepreneurship Success Equal Financing?