I back into the answer.

To me, it’s very important than the founders, by the time of IPO (or exit), together own at least 20%.  Or “double digits each” as I think about it.  The more, the better.  But at least >=10% each (assuming 2 co-founders, equal ownership) after as many rounds as it takes to hit a liquidity event.

If I think the founders will be so diluted, by so many rounds, that they’ll end up in the single digits each — I’m out.  Or at least, we need to restructure the company with top-up grants to get them there. ‘Cuz I just don’t believe it’s sufficient motivation.  And also, I don’t want founders feeling like they work for The Man.

That doesn’t mean the founders need to own >= 50%.  We can’t all be Atlassian.  But in an ideal world, they would own the majority of the company at least when I invest.


A little more here: https://www.saastr.com/the-pernic…


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