I’m currently working on an investment in a very early stage company. it’s likely to happen and I’m looking forward to telling you all about it soon :)
There were a bunch of issues influencing the decision about how much money this company needs. Control, ownership, funding requirements now, funding requirements over time, etc.
Thankfully the founders and investors are on the same page.
This is an easier conversation in an early stage company where the founders have already built an initial version of their product.
It would have been a more challenging & speculative conversation if the founders had a vision and no early product.
We invest in both types of companies but the funding amount conversation is always easier for everyone in the former, not the latter.
Marc Andreesen has a post today on this very topic, “How Much Funding is too little? Too Much?”