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Havish Gupta

Stealth • 2m

Their equity struckture is actually not that bad considering the benifits the Startup gets because of them. At start, YC's invests a total of $500,000 into our company. This is split into two parts: 1) $125,000 for a fixed 7% stake 2) for the leftover $375,000, the equity is dicided based on the valuation on their next round For eg the startup raises at $5 Million valuation, YC will get $375,000 / $5 Million stake which is another 7.5%.

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90% valuation cut basically means the founder equity and ESOPs must have been wiped off 🤯

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