From my backlog of reading comes this article from Rob Go’s blog, http://bit.ly/LYsbdK describing in very simple terms why it is that you hear a VC make the stipulation of a minimum ownership when they invest in a company.
As with other things related to VC funding, the more I learn about it, the more I’m convinced that it is a wonderfully simple subject at the very core. However, the terminology and legality surrounding various aspects of VC funding have taken pedestrian mathematics involving no more than addition, subtraction, multiplication and division into an esoteric subject and a minefield for entrepreneurs.
A great read for any entrepreneur!
Hype Cycles 