I think I was unnecessarily unclear - let's say we're talking about buying eggs. Suppose I'm willing to pay up to $3 for a dozen. That doesn't mean that I should buy them if I find eggs for $2.99 - I should keep…
The article ignores how market prices work - the formula presented lets you know the maximum equity you can give up and still get a positive return by doing so, but incorrectly explains why VCs accept much less - the…
I think I was unnecessarily unclear - let's say we're talking about buying eggs. Suppose I'm willing to pay up to $3 for a dozen. That doesn't mean that I should buy them if I find eggs for $2.99 - I should keep…
The article ignores how market prices work - the formula presented lets you know the maximum equity you can give up and still get a positive return by doing so, but incorrectly explains why VCs accept much less - the…