Don’t listen to VCs telling you “think big”. They push you take huge risks so that your startup fits their portfolio made of many such bets. Your company has to reflect your risk profile, not anyone else. It’s not gonna be them finding themselves with nothing to show for if the company goes bankrupt

So that's typical of the VC jargon, "think big", "be bold", "not fear incumbents", "move fast", "break things".

In the end it all means this:

1) They like the idea

2) They like the team

3) They like the vision

4) THEY don't like how conservative you are being

VCs think in bets, so for an investment to be worth their while it has to be aggressive in the vision, execution and risk profile, so a failure or a bankruptcy doesn't really mean that much for a VC, their money is made on the single startup which becomes successful.

You on the other hand, you only have this horse to ride, there are no alternative bets, you are essentially monodimensional and non-diversified.

Never give in to a VC and change your risk profile because they ask you to do so, because at the end of the day when the company fails it's not gonna be them finding themselves with nothing to show for after 5 years of hard work and sleepless nights

Always stick to your guns and keep the risk profile which works best for you, never compromise for equity.

Alternative:

If you do compromise, don't be dumb about it, don't believe your own hype (not to mention the one fed you by VCs), pay yourself accordingly. Extract 700k-1mm from the company as your salary every given year! If it's a tech startup even more than that 1.25-1.5mm is the appropriate salary and it has to be NET of taxes. If it's a tech startup in the Valley you can do 2-2.5mm net of taxes

submitted by /u/AjaxFC1900
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Startups – Rapid Growth and Innovation is in Our Very Nature!

Would you rather pay a lump sum upfront for a website or nothing upfront and just a monthly, recurring amount?

Hey everyone! I’m looking for some feedback.

I’m pitching web design to small, local businesses (landscaping, power washing, auto detailers, etc.)

The software/platform I’m using to build the sites uses AI to build niche specific sites that you can then further customize. They charge nothing upfront or to build them and then $ 45 a month per sold site.

I know web design is a competitive industry, but I’m actually flooded with leads.

I’m basically going to business owners and saying I’ll build them a website for nothing down and they only pay if they like it.

The two pricing models I’m considering are

1) $ 389 and then $ 50 a month 2) Nothing for the website and $ 80 a month

submitted by /u/thesonofnarcs
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Startups – Rapid Growth and Innovation is in Our Very Nature!

College student who worked her ass off and worried she’ll get nothing

I’m graduating this spring and worked the past few years on a beauty product startup. We are attracting angels and beginning to scale, so it looks like we are getting to the good stuff. I am the LLC’s 1st C-suite executive and have been working without comp b/c I’m passionate about beauty products and my friend started it.

I have never asked about equity or comp, and I am graduating into a full-time job (fingers crossed) and won’t be retaining my executive position. But I’m seeing investors say it might be big one day, and I can’t help but feel I deserve something. My friend, the founder, has said on numerous occasions to me that she views me as a founding member and that I’ve been instrumental to getting us to where we are. She also said verbally she wants to grant me equity if it becomes big. And yet she legally retains 100% equity (was the sole owner when I joined), and when I hinted at being involved after graduation in an advisory role, she brushed even that idea off. It should be noted she has never put any of her own money into the company yet (all donation money and debt from family and alumni so far).

I’ve learned many lessons for the next time I attempt entrepreneurship. I know I misplayed my cards. But I’ve also been misled, important for our growth, and was never given the opportunity to get stake or comp. Anyway, given the current reality, how can I attempt a dialogue so that I don’t leave with literally nothing (not even title recognition)? This person is my good friend (even if her actions sometimes make me feel otherwise), so I have hope that if I bring a good argument I can get something. Please don’t be too mean, I already feel awful

submitted by /u/bantusonic
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Startups – Rapid Growth and Innovation is in Our Very Nature!