How start-up equity dilution works for Founders and Early Investors ?

Startups typically have three broad ways of funding their companies. They are incubators/accelerators, angel investors, and venture capitalists (institutional investor). Generally, Incubators and Accelerators help the start-up team to set-up the company, and shape the start-up's Go-To-Market strategy. This article is limited only to explain how the equity dilution works and won't get into the …

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The dilemma of Profits or Share

Consider a firm that wishes to increase current year profits p, as well as market share m.  As shown in the figure, for some values of m profits increase, and then it starts to decrease beyond a point.  Beyond a point increased market share comes only with reduced current year profits because of increase expenditures …

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