Tools

Search

Explore

Videos Channels Figures

Atmrix

About

Tools

Search

Explore

Videos Channels Figures

Atmrix

About

MS

Michael Seibel

12/17/21

@ Y Combinator

If you find a lead investor, the lead often wants to invest the entire amount to meet their ownership target, which can limit your options.

Video

YC

Understanding Investor Terms & Incentives || Rookie Mistakes with Dalton Caldwell and Michael Seibel

@ Y Combinator

Understanding Investor Terms & Incentives || Rookie Mistakes with Dalton Caldwell and Michael Seibel

12/17/21

Related Takeaways

BS

Ben Silbermann

10/25/13

@ Y Combinator

If you really need money and the investor knows they are your only option, you have no leverage in negotiations, which puts you in a tough spot.

YC

Y Combinator Cast

08/18/23

@ Y Combinator

It's challenging to identify a great investor, especially for early-stage founders who often have limited options.

MS

Michael Seibel

12/17/21

@ Y Combinator

When an investor expresses interest in your company contingent on finding a lead, they are essentially getting a free option to invest later without commitment.

YC

Y Combinator Cast

04/30/22

@ Y Combinator

Investors often reject pitches because they don't see the founder as capable of leading a large organization, which is a significant concern during the investment process.

DC

Dalton Caldwell

04/18/24

@ Lenny's Podcast

Investors often say no because they have limited budgets and are looking for opportunities that seem like the best fit for their investment strategy.

MS

Michael Seibel

12/17/21

@ Y Combinator

When an investor says, 'Come back when you find a lead,' it often means they are not interested in investing at that moment.

MS

Michael Seibel

12/17/21

@ Y Combinator

Some investors structure their deals around the expectation that your company will sell for a modest amount, which can limit your potential.

GR

Geoff Ralston

10/11/18

@ Y Combinator

Having multiple funding options strengthens your negotiation position; if you're the only one seeking investment, the investor holds more power.

KN

Kirsty Nathoo

10/17/18

@ Y Combinator

The lead investor in a priced round typically negotiates the creation of an option pool for new employees, which can dilute existing shareholders but not the new money being invested.