Your position
VC position
| VC Equity % ?The percentage of your company the VC firm will own in exchange for their $100 million investment. A lower percentage means a higher company valuation and more ownership retained by you and existing shareholders. | Points | |
| 30% or less | 24 | |
| 31 - 35% | 22 | |
| 36 - 41% | 20 | |
| 42 - 46% | 18 | |
| 47 - 49% | 16 | |
| 50 - 55% | 8 | |
| 56 - 59% | 4 | |
| 60% or more | No Deal | |
| Type of Stock ?The class of shares the VC receives. Common — No special privileges. Same rights as all other shareholders. Convertible Preferred — VC gets their investment back first in a sale, but converts to common if the company does well. Redeemable Preferred — VC gets their money back and keeps their equity share if the company is sold or goes public — a "double dip." | ||
| Common | 6 | |
| Convertible Preferred | 5 | |
| Redeemable Preferred | 2 | |
| VC Board Members ?The number of seats the VC can appoint to your board of directors, which currently has 3 members (you + 2 independents). More VC seats means more investor influence over strategic decisions, management oversight, and major transactions. | ||
| 0 members | 2 | |
| 1 member | 8 | |
| 2 members | 6 | |
| More than 2 | No Deal | |
| Founder Vesting ?How many years until you fully re-earn your equity stake. With vesting, you temporarily surrender your shares and earn them back gradually each year you stay. A longer schedule ties you to the company longer but limits your flexibility. | ||
| No vesting | 12 | |
| 3 years or less | 10 | |
| 4 or 5 years | 8 | |
| 6 or more years | 3 | |
| CEO Replacement ?The performance benchmark that triggers the VC's right to replace you as CEO. Benchmarks are based on your own revenue projections — conservative (most achievable), moderate, or aggressive (near-impossible to hit consistently). No provision means you can't be removed based on revenue targets. | ||
| No provision | 19 | |
| Conservative Projections | 14 | |
| Moderate Projections | 7 | |
| Aggressive Projections | No Deal |
Your Score: 0 pts / 30
What-if: 0 pts