Which is better – a $300,000 seed funding with 16% equity (to the investor) or $942,000 funding with 39% equity?

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JASON LEMKIN

Usually, $942,000 for 39%.

I’m super sensitive to dilution. Selling 39% in a round is an awful lot.

But …

Much worse is failing.

Keep your burn the same, and buy yourself 3x the lifespan, the runway.

This more than triples the odds you win. It probably 30x’s them.

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Published on April 4, 2017
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