Below we show a company going from angel round to exit in 7.25 years. The final column which is proceeds to the founder shows what the ownership stake is worth after all the growth and offsetting dilution. In this table, our founder raises $66.3mm and exits the business are a valuation of $150mm. The dilution over time results in an ownership stake of 14% to the founder worth $21.5mm.
In summary, cash efficiency and keeping burn down isn’t just good for investors, it’s good for founders as the compounding effect of cash efficiency results in significantly lower founder dilution.
Visit us at blossomstreetventures.com and email us directly with Series A or B opportunities at sammy@blossomstreetventures.com
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