When a $40M is More Than a $200M Exit
In today's Startup Therapy Podcast, Wil and Ryan discuss why a lower valuation exit can offer founders more advantageous financial outcomes than a higher valuation exit. This happens because of things like how much of the company's ownership each founder still has and what investors are expecting from their investments. As startups grow and get more funding, founders might end up owning less of the company. So even if an exit seems worth more on paper, the actual money each founder gets can be less due to having a smaller piece of the pie. Let’s delve into the maze of startup exits, exploring the delicate interplay between exit values, ownership, and the real-world implications.
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What to Listen For
00:00 Intro
00:28 Navigating funding & exit strategies
05:59 Optionality
09:23 Outcomes can vary depending on the funding path chosen
13:46 Founder fatigue
17:53 What are preferences?
25:34 Protect your downside first