Is Dilution the Only Solution?

Many entrepreneurs seeking next-round financing for their startups face a bitter choice: Go under or surrender control

If you're lucky, they let you live. But they make you sign away your soul and nearly all of your company in the process. An exaggeration, of course, but that's the bitter complaint from some entrepreneurs in the face of shrinking valuations of their companies by venture capitalists as they negotiate second- or third-round financing in today's decidedly down market.

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