From my perspective it's partically an emotional path, not merely an analytical path. A company that's a startup has an intention, and it's one of these:
1. You use resources to incrementally grow a user base and get market share, then sell it off to a bigger company
2. You develop technology that enhances a company's market share and pulls users from a competitive company's market
3. You lose, and the investor loses a small amount of money
The bottom line for me is that the value of your start-up is based on the number of users you can get. It's about your intention X with the assistence of your investor will find the users and people you need. Whether it's a good deal or not is irrelevant if those are not true - take the journey.
Whether it's a Mobius or another VC, for me as an entrepreneur, they have not established a community tool to have access to a community that will help grow the start-up quickly. You're not just buying equity in the equation X you're buying into the community's collaboration.
The equity value is not just based on "here's some money for X cents on the dollar" X it has to go beyond that.
1. You use resources to incrementally grow a user base and get market share, then sell it off to a bigger company
2. You develop technology that enhances a company's market share and pulls users from a competitive company's market
3. You lose, and the investor loses a small amount of money
The bottom line for me is that the value of your start-up is based on the number of users you can get. It's about your intention X with the assistence of your investor will find the users and people you need. Whether it's a good deal or not is irrelevant if those are not true - take the journey.
Whether it's a Mobius or another VC, for me as an entrepreneur, they have not established a community tool to have access to a community that will help grow the start-up quickly. You're not just buying equity in the equation X you're buying into the community's collaboration.
The equity value is not just based on "here's some money for X cents on the dollar" X it has to go beyond that.