Some Thoughts and Models Around Ownership Targets
This is going to be BIG.
MARCH 3, 2019
You hear this from VC’s a lot: “We need to own X% of your company to make our returns.” They back it up with sensible math—owning 20% of a billion dollar outcome returns a $200mm VC fund, and, of course, you’re trying to at least return the fund. So, no one really questions the ownership model. Yet, when you buy shares of Apple or Facebook, you don’t even think about what percent of the company you own.
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