Let’s get real – the one thing you want is success for your business. If you’re concerned about levels and end results of success, that’s a great problem to have.
Success, especially if you’re reading this, probably requires fundraising. Throughout fundraising, you’re going to get diluted. Most likely, diluted below 50%. You’re going to report to a board of directors. You’re going to report to investors. Most importantly, you’re going to lose control very early, regardless of percentage ownership. Funding rounds are going to include board seats and “veto” rights over many aspects of the business.
So yes, how much you own matters and can mean a difference in profits, but try to keep it in that lens – profits on eventual success. Up front, worry about success at all, first. Be savvy in your deal negotiation and try to maximize what you (and employees, and early investors), but don’t get lost in that. Make the deal with a focus on fair and going forward with a good working relationship with financial partners.
