This Week in Startups Why VCs care about ownership percentage + Flowcarbon CEO Dana Gibber | E1581
Oct 9, 2022
Dana Gibber, CEO and co-founder of Flowcarbon, delves into her journey with the company, which focuses on blockchain solutions for carbon credits. She discusses how this technology enhances the verification process in carbon markets, addressing issues of transparency and efficiency. The conversation highlights the evolution of opinions on carbon offsets, the importance of blue carbon initiatives, and Flowcarbon's innovative revenue strategies. Gibber also shares how the company plans to navigate the complexities of the carbon offset market.
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Ownership Importance
- VCs often prioritize ownership percentage to maximize returns, given the power law in venture capital.
- A few big wins cover losses from other investments.
Ownership Strategy
- VCs aim for higher ownership to secure more control and protective provisions in deals.
- They posture for better terms, especially with less experienced founders.
Time Value
- VC time is a valuable resource, making larger ownership stakes crucial for board seats and active involvement.
- Smaller stakes might not justify the time commitment for a VC.