deal or no deal - dilution
So a big killer to a lot of deals is dilution. Dilution is simply how much equity you are willing to give up. I recently moderated a panel where one prominent VC remarked “don’t worry about dilution, if you’re building a good company, you’ll still get rich”. While there is merit to this, it is also bullshit. I know lots of entrepreneurs that took lots of money and bad terms and lost control and got screwed and ended up with no control over their own destiny. Make sure you have a great lawyer and review the options. However, ask yourself a more important question: What other options do you have? It’s a shitty economy now, if you can get money faster, take it, don’t worry about dilution and build your company. Raising money is a bitch. It is not fun. It is a waste of time. Get money and get out if you can.
