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The Biggest Misconception of Startup Funding, According to Scott Painter

Posted by Duke Lee on 2014-04-18

The Mentor Minute gives you exclusive startup video clips from the Founder Institute's worldwide network of 3,100+ mentors. For more Mentor Minutes, visit our Startup Founder 101 YouTube Channel

Los Angeles Founder Institute mentor, , Founder and CEO of TrueCar (which recently filed for a $125 million IPO), describes how the biggest funding pitfall for new entrepreneurs is when they assume they can give up very little equity. In his career, Scott has started 37 companies and raised $1.25 billion in venture capital

According to Scott;

You've got to get your head around the fact that you're giving up 30% of the equity of something you're creating that totally depends on you to make it or not."

               

If you could benefit from expert training and feedback to launch a company, apply to the Founder Institute today. We are currently accepting applications in many other cities worldwide

(Piggy Bank image via Shutterstock)

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