Oregon Venture Fund cofounder and managing partner Eric Rosenfeld takes us through a few startup dilution scenarios to help founders understand when dilution is good — and when it might have less than positive consequences.
The moral of the story…?
Raise more than you think you need. A larger raise seldom hurts performance or enterprise value and almost always helps reduce risk and can accelerate growth and value creation. Worry less about dilution or the illusion of maintaining “control” and capping round sizes artificially low. Instead, worry more about the efficiency of generating incremental revenue or value from each dollar you spend.
To learn more about dilution, read “Dilution Delusion – When is dilution your friend and when is it your foe?“
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