Deadlocks weren't the only problem with fixed-size equity rounds.
Another was that startups had to decide in advance how much to
raise. I think it's a mistake for a startup to fix upon a specific
number. If investors are easily convinced, the startup should raise more
now, and if investors are skeptical, the startup should take a
smaller amount and use that to get the company to the point where
it's more convincing.
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High Resolution Fundraising ers' expectations about equity rounds) you might be able to do the same thing with equity instead of debt. Either would be fine with startups, so long as they can easily change their valuation. <span>Deadlocks weren't the only problem with fixed-size equity rounds. Another was that startups had to decide in advance how much to raise. I think it's a mistake for a startup to fix upon a specific number. If investors are easily convinced, the startup should raise more now, and if investors are skeptical, the startup should take a smaller amount and use that to get the company to the point where it's more convincing. It's just not reasonable to expect startups to pick an optimal round size in advance, because that depends on the reactions of investors, and those are impossible to predict. Fixed-size Summary
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