Founder equity · Financing

What are the most effective ways to keep company control after several financing rounds?

Abhinandan Chada Android Developer at Code Brew Labs

October 20th, 2016

There are many successful startups whose original founders lost control over them after several rounds of financing. To me, this is like losing part of yourself. It’s not all about money. But if you take Facebook as an example. Mark Zuckerberg successfully managed to stay on top of things with his 26% of equity. How did he manage to do that? What is the most effective way to keep company control after so many rounds of financing?

Gabor Nagy Founder / Chief architect at Skyline Robotics

October 20th, 2016

That is exactly why I'm trying to tough it out, staying self-funded as long as I can.
Too many horror stories like you mentioned.
Most investors nowadays won't fund you, until you have revenue anyway, at which point you don't need funding.
They pretty much just want a free lunch.
Then, they kick you out of your own company...
Tough it out, have a side job, focus on the product, customers and revenue.
Once you have that, grow organically.
I know, easier said than done...

I wrote an article about this, BTW: