Pricey SaaStr: We bought 30% of our Firm Pre-Cash Throughout our Mates and Household Spherical. Will VCs Care?
Within the outdated days, 30% in your friends-and-family spherical was fairly frequent. It could turn into frequent once more, as occasions are more durable for a lot of nowadays in enterprise.
What VCs will need to ensure that is that:
- The founders are adequately incented going ahead
- The angels earlier than them, as a gaggle, don’t have management or blocking rights over future financings.
- The cap desk is “regular”
In order a tough rule, for those who’ve bought > 50% of the corporate earlier than any conventional enterprise cash is available in, and/or given up any large management rights … then most VCs will need to restructure issues, a method or one other.
However even then, they’ll simply let you know. “We’ll want to alter X and Y earlier than we are able to make investments.”
Simply determine any points up entrance and share that you simply’ll work on them collectively.