What do I need to watch out for when setting up funding from a VC?
I think you can basically figure out everything together with a good Silicon Valley corporate attorney.
There’s price (you’ll understand this), the option pool (which impacts price) … a bunch of other blah blah terms … and then …
Watch out for control.
Dilution s***s. But — the market sets the price. It is what it is.
You can always issue more stock. Up to a point, all that does is reduce your ownership a smidge, a bunch, or a lot.
But the one thing you can’t get back is control. Once it’s sold … it’s gone forever.
Giving up one board seat isn’t giving up control. And a board should be roughly proportionate to ownership.
But giving up the majority of the board seats certainly is giving up control.
Then — you’ll work for The Man.
Is that really why you did this?