Topic · 26 of 84 articles

Fundraising articles on valuation & dilution

What is your company worth, and what will this round really cost you? These articles cover how valuations are actually set, the dilution math founders get wrong, and why the highest price is not always the best deal.

Heidi Roizen (Tumblr)·May 2015 ·15 min read

How to Build a Unicorn From Scratch – and Walk Away with Nothing

A veteran VC and former founder walks through a fictional-but-realistic 'grim fairy tale' in which a founder builds a billion-dollar company and ends up with nothing, term by term: participating preferred, ratchets, guaranteed IPO returns, redemption rights.

Term SheetsValuation & DilutionSeries B+Horror Story
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Above the Crowd·April 2016 ·30 min read

On the Road to Recap: Why the Unicorn Financing Market Just Became Dangerous… For All Involved

Gurley's landmark analysis of the late-stage unicorn financing market: how dirty term sheets, valuation obsession, and the incentives of every player (founders, VCs, LPs, bankers) set up companies for painful recaps. Written at the top of the 2015-16 cycle and vindicated repeatedly since.

Valuation & DilutionTerm SheetsSeries B+Contrarian View
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Y Combinator Library·2016 ·40 min read

A Guide to Seed Fundraising

YC's comprehensive seed fundraising manual: when to raise, how much, SAFEs vs. priced rounds, meeting mechanics, negotiation, and closing documents, written by a YC partner for first-time founders.

Raise ReadinessFundraising StrategyPre-SeedHow-To
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sahillavingia.com·February 2019 ·20 min read

Reflecting on My Failure to Build a Billion-Dollar Company

Lavingia raised $8M from top VCs at 19, failed to hit venture-scale growth, laid off 75% of his team after a failed Series B, and rebuilt Gumroad as a profitable, deliberately smaller company. A brutally honest account of what happens when you take venture money and land on the 'good but not billion-dollar' outcome.

Failed RaiseFundraising PsychologySeries AFirsthand Story
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Buffer Open blog·October 2014 ·15 min read

We're Raising $3.5m in Funding: Here is the Valuation, Term Sheet and Why We're Doing It

Buffer publishes every detail of its $3.5M Series A: the valuation, the actual term sheet, investor list, ARR ($4.6M), and the unusual structure that let founders and early employees take secondary money. A landmark in fundraising transparency.

Valuation & DilutionTerm SheetsSeries AFirsthand Story
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Venture Hacks·April 2007 ·12 min read

The Option Pool Shuffle

The classic teardown of how VCs quietly lower your effective valuation by putting the option pool in the pre-money. Includes the math and negotiation scripts to fight back.

Term SheetsValuation & DilutionSeedHow-To
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SparkToro blog·June 2018 ·15 min read

SparkToro Raised a Very Unusual Round of Funding & We're Open-Sourcing Our Docs

After his bruising VC experience at Moz, Fishkin raised $1.3M from 35 angels under a novel structure allowing profit-sharing distributions instead of requiring a huge exit, and open-sourced the legal docs so others could copy it.

Alternative CapitalTerm SheetsSeedFirsthand Story
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AVC·June 2014 ·6 min read

What Seed Financing Is For

Wilson's short, sharp definition: seed money is for building product and finding product-market fit, nothing else, and rounds sized or spent otherwise create broken cap tables and stranded companies.

Raise ReadinessFundraising StrategySeedContrarian View
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Feld Thoughts·August 2005 ·10 min read

Term Sheet Series Wrap Up

Index to Feld and Mendelson's 2005 series explaining every clause of a VC term sheet: liquidation preferences, anti-dilution, protective provisions, drag-along, and which terms actually matter. Later became the book Venture Deals.

Term SheetsValuation & DilutionSeedHow-To
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alexdanco.com·February 2020 ·20 min read

Debt is Coming

Danco argues that recurring-revenue businesses funding predictable growth with dilutive equity is a historical accident, and predicts the rise of revenue-based and debt financing for startups. Sparked a wide industry debate.

Alternative CapitalFundraising StrategyStage-AgnosticContrarian View
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Kwokchain-adjacent Substack (Not Boring in Public)·April 2021 ·20 min read

Playing Different Games

The essay that explained the 2021 Tiger Global phenomenon: how deployment velocity, price insensitivity, and low-friction terms let some funds play an entirely different game, and what that means for founders choosing among capital providers.

Fundraising StrategyValuation & DilutionSeries B+Teardown
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paulgraham.com·July 2007 ·10 min read

The Equity Equation

The 1/(1-n) rule: give up n% of your company only when the trade makes the remaining stake worth more than the whole was before. Applies the same math to investors, hires, and co-founders.

Valuation & DilutionNegotiationStage-AgnosticHow-To
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Y Combinator blog·2017 ·20 min read

How to Raise a Seed Round

YC partner Aaron Harris's operational seed-raising manual: preparing materials, building the target list, running meetings in a compressed window, and closing with SAFEs.

Fundraising StrategyTarget ListSeedHow-To
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Y Combinator Library·2018 ·15 min read

Safe Financing Documents

The official home of the SAFE: current post-money SAFE documents, side letters, and YC's user guide explaining caps, discounts, and dilution math.

Term SheetsValuation & DilutionPre-SeedHow-To
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Hustle Fund blog·2022 ·10 min read

How Fundraising Stages Work

Plain-language breakdown of what pre-seed, seed, and A actually mean now, what each stage's investors expect, and how round sizes and expectations have drifted from the labels.

Raise ReadinessFundraising StrategyPre-SeedHow-To
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Founder Collective·2016 ·12 min read

Overdosing on VC: Lessons from 71 IPOs

A seed VC analyzes 71 tech IPOs and finds no correlation between capital raised and outcome quality: the most efficient companies returned more per dollar than the most funded. Argues overcapitalization is a drug with real side effects.

Valuation & DilutionFundraising StrategySeries B+Data & Benchmarks
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Elad Gil's blog·March 2011 ·8 min read

How Funding Rounds Differ: Seed, Series A, Series B, and C

Gil maps what each round is actually evaluated on: seed buys the team and idea, A buys early product signal, B buys proof the machine works, C buys scaling economics, with implications for what to emphasize at each.

Raise ReadinessFundraising StrategySeedHow-To
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The Startup (Medium)·2019 ·20 min read

A Seed Round Manual for Founders: Strategies, Pitch Prep, Valuation, Traps, Tips and More

A founder who raised $1.5M+ across UK and US investors documents the whole process as a manual: what worked, the traps she fell into, and differences between London and Valley investor behavior.

Fundraising StrategyPitch DeckPre-SeedFirsthand Story
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Pmarchive (blog.pmarca.com archive)·2007 ·12 min read

How Much Funding Is Too Little? Too Much?

Part of Andreessen's legendary 2007 startup guide, written as a founder before a16z existed: how to size a raise against milestones and market windows, the pathologies of too little money and the subtler pathologies of too much.

Fundraising StrategyValuation & DilutionStage-AgnosticHow-To
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Holloway·2019 ·300 min read

Holloway Guide to Raising Venture Capital

A book-length, edited, citation-heavy reference on the entire venture fundraising process, from instruments and terms through negotiation and close, reviewed by dozens of practitioners.

Fundraising StrategyTerm SheetsPre-SeedHow-To
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Newcomer·July 2025 ·20 min read

My Conversation with Substack Co-Founders Chris Best & Hamish McKenzie Fresh Off Their $100 Million Funding Round

Newcomer interviews Substack's founders immediately after their $100M round at $1.1B: how the round came together after a rocky stretch (including a crowdfunded raise when VCs cooled), and how the narrative was rebuilt.

Fundraising StrategyValuation & DilutionSeries B+Interview
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Marker (Medium)·2019 ·12 min read

Reflecting on My Failure to Build a Billion-Dollar Company, Part 2

An analytical companion to Lavingia's essay: Baschez unpacks the structural reasons venture-backed Gumroad 'failed' at billion-dollar scale while succeeding as a business, examining how funding choices define what counts as success.

Failed RaiseValuation & DilutionSeries ATeardown
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tomtunguz.com·2016 ·30 min read

A Founder's Guide to Venture Capital & Startup Fundraising

Tunguz's index of his data-driven fundraising posts organized as a founder's guide: how VCs decide, round dynamics, valuation math, and negotiation, each backed by his analyses of actual funding data.

Fundraising StrategyValuation & DilutionSeedHow-To
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NextView Ventures blog·October 2019 ·7 min read

Which Fundraising Round Should You Skip?

With founders now raising 3-4 rounds before Series A, Go argues the total dilution math forces a choice: decide deliberately which round in the chain you'll skip, and shows how to reason about it.

Fundraising StrategyValuation & DilutionPre-SeedContrarian View
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Northflank blog·2023 ·15 min read

How to raise a seed round (from a former VC turned founder)

A former VC who crossed to the founder side demystifies the seed process from both chairs: board seats, how much to raise, investor selection, and the parts of VC behavior that only make sense once you've sat in the partner meeting.

Fundraising StrategyInvestor MeetingsSeedHow-To
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Baremetrics Founder's Journey (Medium)·2017 ·12 min read

Getting Out of the Startup Rat Race

After raising a $500K seed and then nearly running out of money, Pigford describes negotiating with his investors to reset expectations and step off the venture growth track, with the actual numbers Baremetrics published all along.

Alternative CapitalValuation & DilutionSeedFirsthand Story
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