alt Hacker NewsThe best possible case is that you get a cash infusion now in exchange for giving up a huge percentage of your future revenue and control of the company.
The best possible case is that you get a cash infusion now in exchange for giving up a huge percentage of your future revenue and control of the company.
I mean the goal is that the money invested increases the value of the company so that the founder's reduced stake is worth considerably more than the founder's full stake of the counterfactual company where he didn't take VC money. VCs can be strongly positive sum.