Don’t work with terrible investors. Your investors don’t know shit. And you can never reverse the situation, once you are in. A No today. A No tomorrow. A No when Jesus returns.
70% at seed stage is a very bad deal and demotivating for the founders. Why build when you could just walk away with the cash. That the investors didn’t know this says a lot about them than about you. They are trying to grab the entire pie not knowing they are shooting themselves in the foot.
"Come to us anytime you need money ". Okay bro, that’s bullshit. In the wonderful world of Eric Cartman(of Southpark), that’s bullcrap. Another reason they don’t know what they are talking about. How about you suddenly need a billion? Let me tell you what is going to happen. After second round of cash and things don’t go fairly great, they will leave you in the sun to dry.
Money rules everything. But the best kind of cash will always be be smart money. It’s really hard to come around these people but the best guys to raise money from, are fellas are who are in this business. Fellas who invest in tech startups or actually run one. They know and understand. If you can, these are fellas you should be reaching out to.
The highest anyone should give away at seed stage, in my opinion, depending on the cash demand of the venture, is 30%.