Post by Collektiv Club

🚀 Valuation isn't the only game in town. Ownership is where it's at, and it's high time founders understood why. We're all about that ownership math 🧮. It's the secret sauce that drives every VC decision. Here's the kicker: a high valuation with low ownership can be worse than a lower valuation with higher ownership. Counterintuitive, right? Let's break it down: - Scenario A: €3M at €30M post-money valuation gets you 10% ownership. Exit at €300M? €30M return (10x). - Scenario B: €3M at €15M post-money valuation gets you 20% ownership. Exit at €300M? €60M return (20x). Same investment, same exit, but the returns are worlds apart. And here's the thing, founders: the €300M exit is more likely in Scenario B. Why? Less dilution, easier up rounds, more room to grow, and lower expectations to exceed. But wait, there's more. Most funds have ownership thresholds—minimum percentages they need to make deals worthwhile. For seed funds, it's 10-15%. For Series A funds, it's 15-20%. This is crucial for power law returns. Understanding this ownership math should change how you approach fundraising. Know their minimum, see valuation as a means, not an end, and remember that pro-rata is about ownership maintenance. So, what's your take? How do you balance valuation and ownership in your fundraising strategy? 🤝💼 #SaaS #Fundraising #VC #OwnershipMatters #CollektivClub