Winning? Startup Equity Split

How Startup Funding Works: Equity Splitting

As a startup founder, should you hold on to your 100% ownership of the company or let go of some equity in the funding process? Bottom line, are you going to end up an employee again? And how does the pie-cutting work?

In a few words – graphics in fact, Funders and Founders have put together a great piece of information. An infographic about the splitting of equity, from startup idea to IPO:

“A hypothetical startup will get about $15,000 from family and friends, about $200,000 from an angel investor three months later, and about $2 Million from a VC another six months later. If all goes well.”

Infographic: How startup funding works

[Infographic via Funders and Founders]

Keep reading on the Funders and Founders website, the full article is HERE.

Rant: Funding raised and valuations, the startup hype bubble

Startup hype bubble on thisissamstown.com

Hype and unicorns

Startups now become unicorns, everyday valuations go through the roof and the tech journos put funding news on a pedestal.

However, just let go of the noise and headlines for a second. What do you get at the end of the day?

A fait amount of bullshit and not necessarily results.

Funding and valuation have become the ultimate fantasy in the startup world. But is the point of any company out there not to actually MAKE money? Companies are born and die but they share the same goal: generating revenue and creating value.

Yet, startups have been allowed to play with millions and burn them for the past 10 years while the world would not care.

The “bubble” so many are speaking about at the moment is here. Created by letting kids in at an open bar and making it a trend.

The bottom line of this trend: the hype allows the “cool” kids to get millions when the companies with a business plan do not manage to raise the few do-or-die hundreds of thousands of dollars they would need to pass the tipping point and generate revenue – and profit – out of a solid business model. Yes, most founders I know do not have time to ask you what your superpowers are as the one and only question when recruiting but are rather interested in your background, achievements and personality.

News outlets are highlighting this trends too but seemingly for the sake of it when tech “writers” keep producing pieces about funds raised at the same pace, alternating with the neighbour’s – or drinking buddy – latest “tech”/fun/random project.

The bubble is there. It is just not a financial one, just a hype one.

A video worth £250,000?

wpid-52a06e45356f92.75896955.jpg

A video pitch for an equity crowdfunding.

Nameloop Glasgow-based innovative startup is crowdfunding via the number one platform in the UK, Crowdcube.

Seasoned investor? Wantrepreneur? Have a go and check it out at bit.ly/nameloop

Invest and share!