Funding a startup is a tricky business. For every story of a Facebook or Zynga where the founders got the cash and kept full control of the company you can hear scores in which investors become the boss and founders essentially turn into employees.
Unless you have the net worth to swing a sizeable loan, if you need a lot of cash to get your business off the ground, you generally have to give up equity. The question becomes whether your brainchild becomes someone else’s property. Even if sales take off, if you don’t go along, you may not get to stay. And if things don’t go well, there may not be the cash to keep moving until things turn around. That’s become a big issue with the deflation of the unicorns, as once high-flying startups suddenly find themselves worth a lot less than the founders thought.
So it was interesting to speak with Dan Burton, CEO of Health Catalyst. The company provides data warehousing and analytic tools to the healthcare industry. So far they’ve raised $165 million in capital with the company retaining $140 million and $25 million a sales of shares from… View full article here
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