Naive Pricing Costs Founder Equity

“The Musk brothers were not the most aggressive businessmen at this point. “I remember from their business plan that they were originally asking for a ten-thousand-dollar investment for twenty-five percent of their company,” said Steve Jurvetson, the venture capitalist. “That is a cheap deal! When I heard about the three-million-dollar investment, I wondered if Mohr Davidow had actually read the business plan. Somehow, the brothers ended up raising a normal venture round.””

“*   The Musk brothers were not the most aggressive businessmen at this point. “I remember from their business plan that they were originally asking for a ten-thousand-dollar investment for twenty-five percent of their company,” said Steve Jurvetson, the venture capitalist. “That is a cheap deal! When I heard about the three-million-dollar investment, I wondered if Mohr Davidow had actually read the business plan. Somehow, the brothers ended up raising a normal venture round.””