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Is Dilution a Bad Thing?
If you want the attention of a big strategic partner, you're going to have to give them different terms. They may still appreciate having a gross revenue royalty till at least their principal gets off the people and now they can recycle that cash into the next deal. The higher the level of sophistication, typically the more that the investor does not want to be capped at a 2x return in the now. But everybody that I know would rather not be illiquid forever and just be playing with house money and get their initial investment off the table.