Chapter 6 of 10All chapters
Chapter 6 of 10
Funding
Where the money comes from and what it costs.
The options
Revenue from customers, savings, loans, grants, angels and venture capital. Each has a different cost, a different timeline and different expectations attached.
- Customer revenue is the only funding that does not dilute or need repaying.
- Venture capital expects a very large outcome, which sets the strategy whether you like it or not.
Equity
Selling equity is permanent and compounds across rounds. Terms such as liquidation preferences often matter more than the headline valuation, and are less discussed.