Equity Capital Spectrum
What this is: Classic equity—from angels and pre‑seed to multistage venture and growth. When to use: After PMF or when capital intensity + speed or winner take all markets justify dilution and loss of company control. When to avoid: Pre‑evidence phases where governance/time pressure would derail learning. If you want to be King vs Rich.
Tools & Structures
Smart Money
Domain‑savvy angels or seed funds; small checks, speed, signal.
Pre‑seed/Seed VC
Institutional seed with ownership targets; board observer/seat likely at Seed.
Series A
Lead with governance; capital for scaling GTM/ops.
Growth Equity
Larger checks with strong preferences; later stages.
Key levers: Ownership targets, governance rights, liquidation prefs, pro‑rata/ROFR.
Case studies: Airbnb (delayed equity until PMF), GitHub (bootstrapped, then one round).
Related: See Structured & Hybrid Equity for SAFEs and convertible notes, and Evaluating Capital for decision framework.
Last updated