Stefano Chiussi - Advisor

Stefano Chiussi - Advisor Advisor

Bootstrapping vs. Fundraising a Start-up dilemma in 2025The more I spend time in the Start-up ecosystem the most this a...
17/05/2025

Bootstrapping vs. Fundraising a Start-up dilemma in 2025

The more I spend time in the Start-up ecosystem the most this argument seems to be the most discussed at events, meetings, coffeshops and elevators too! 😅 The same happened yesterday by in Riga.

⛺ Bootstrapping: you use your own resources
* Retain full ownership and control.
* Grow at your own pace with a strong focus on profitability.
Challenges: Slower growth, limited resources but full autonomy.

💰 Fundraising:
* Access to capital, networks, and credibility.
* Faster scaling, driven by investor accountability.
Challenges: Fundraising cycle, aggressive spending, lack of autonomy.

🔀 Choosing the Right Path:
* Tech or high-growth sectors? Fundraising could be key.
* Long-term, sustainable growth? Bootstrapping may suit better.
* Hybrid approaches are emerging: Validate first, scale later.
* Grants: the magic keyword! 😉

What is your opinion: I'd love to hear experiences and ideas from the community!

Read the complete article in my blog: stefanochiussi.com/blog



* Credits to Kinde.com

HOW FUNDERS CAN LOSE ALL AT EXIT - Part 4 of 4 STANDARD LIQUIDATION RIGHTSIn the fast-paced world of start-ups, securing...
14/05/2025

HOW FUNDERS CAN LOSE ALL AT EXIT - Part 4 of 4 STANDARD LIQUIDATION RIGHTS

In the fast-paced world of start-ups, securing funding is often seen as the ultimate milestone. Founders eagerly sign term sheets with VCs, relieved to have financial backing to grow their business. However, many entrepreneurs overlook the long-term consequences of "standard" investment terms, which can significantly reduce their payout upon exit, even incredibly down to zero!

Here is part 4 of 4 about what to take care of when signing a Terms Sheet.

4. Standard Liquidation Rights: The Order of payouts matters

What It Is: Liquidation rights dictate who gets paid in what order when the company is sold. Preferred shareholders (investors) are typically first in line.
The Problem:
* If the exit isn’t a massive success, founders may get little or nothing after investors take their cut.
* Stacked preferences (multiple rounds of investors each with their own preferences) can eat up the entire exit value.
Example:
* A company raises:
o Seed Round: $5M (1x preference)
o Series A: $20M (1.5x preference)
o Series B: $30M (1x preference)
* Total preferences: $5M + $30M + $30M
* If the company sells for $60M:
* Investors take all $60M.
* Founders get $0.

You can read my blog with all my articles here: stefanochiussi.com

HOW FUNDERS CAN LOSE ALL AT EXIT - Part 3 of 4In the fast-paced world of start-ups, securing funding is often seen as th...
12/05/2025

HOW FUNDERS CAN LOSE ALL AT EXIT - Part 3 of 4

In the fast-paced world of start-ups, securing funding is often seen as the ultimate milestone. Founders eagerly sign term sheets with VCs, relieved to have financial backing to grow their business. However, many entrepreneurs overlook the long-term consequences of "standard" investment terms, which can significantly reduce their payout upon exit, even incredibly down to zero!

Here is part 3 of 4 about what to take care of when signing a Terms Sheet.

3. Standard Dilution Protection: Founders get squeezed over time
What it is: Investors often demand anti-dilution provisions to protect their ownership if the company raises money at a lower valuation later.

The Problem:
If a down round happens (valuation drops), anti-dilution
clauses increase the investor’s share at the expense of founders.
Founders can see their ownership shrink dramatically without additional investment.

Example:
* Founder owns 20% after Seed Round.
* Series A investor has full-ratchet anti-dilution.
* If Series B valuation drops, the Series A investor’s shares adjust upward,
diluting the founder to, say, 10%.
*At exit, this means half the expected payout.

Read my blog with all my articles here: stefanochiussi.com

HOW FUNDERS CAN LOSE ALL AT EXIT - PART 2 of 4In the fast-paced world of start-ups, securing funding is often seen as th...
07/05/2025

HOW FUNDERS CAN LOSE ALL AT EXIT - PART 2 of 4

In the fast-paced world of start-ups, securing funding is often seen as the ultimate milestone. Founders eagerly sign term sheets with business angels and venture capitalists (VCs), relieved to have financial backing to grow their business. However, many entrepreneurs overlook the long-term consequences of "standard" investment terms, which can significantly reduce their payout upon exit, even incredibly down to zero!

While terms like "industry standard vesting", "standard preferences", "standard dilution protection" and "standard liquidation rights" may seem harmless at first, they often favor Investors over Founders. When the Company is eventually sold or goes public, Founders may be shocked to discover how little they actually receive compared to their initial expectations.

With a set of 4 posts I show how these "standard" clauses are smartly used to work against Founders (in Favour of some unscrupulous Investors), using real-world examples to illustrate the financial pitfalls. You can also read the whole article in my website.

2/4. Standard Preferences: Investors get paid first (and more)
What It Is: Preferred shares often come with liquidation preferences, meaning Investors get their money back (or a multiple of it) before common shareholders (Founders and Employees) see a dime.

The Problem:
* 1x non-participating preferences are relatively fair, but participating preferences, where investors take their preference and (eventally) even a share of rthe emaining proceeds, can drastically reduce founder payouts.
* In down rounds or modest exits, Founders may receive nothing.

Example:
A company sells for 50M. Investors had put in 30M with 2x participating liquidation preferences.
* Investors take 60M first, but since the exit is only 50M, they get the whole amount.
* Founders and Employees get $0, despite building the company.

HOW FUNDERS CAN LOSE ALL AT EXITIn the fast-paced world of start-ups, securing funding is often seen as the ultimate mil...
05/05/2025

HOW FUNDERS CAN LOSE ALL AT EXIT

In the fast-paced world of start-ups, securing funding is often seen as the ultimate milestone. Founders eagerly sign term sheets with business angels and venture capitalists (VCs), relieved to have financial backing to grow their business. However, many entrepreneurs overlook the long-term consequences of "standard" investment terms, which can significantly reduce their payout upon exit, even incredibly down to zero!

While terms like "industry standard vesting", "standard preferences", "standard dilution protection" and "standard liquidation rights" may seem harmless at first, they often favor Investors over Founders. When the Company is eventually sold or goes public, Founders may be shocked to discover how little they actually receive compared to their initial expectations.
With a set of 4 posts I show how these "standard" clauses are smartly used to work against Founders (in Favour of some unscrupulous Investors), using real-world examples to illustrate the financial pitfalls. You can also read the whole article in my website.

1/4. Industry Standard Vesting: The Golden Handcuffs

What it is: Vesting schedules ensure that Founders and early Employees earn their equity over time (typically 4 years with a 1-year cliff). While this protects the Company from a Founder leaving early with a large stake, it can also backfire.
The Problem:
• If a founder is forced out (by Investors or Board pressure) before full vesting, they lose unvested shares.
• Even if they stay, an exit before full vesting means they may only receive a fraction of their expected equity.
Example:
A Founder owns 30% of the Company but has a 4-year vesting schedule. If the Company is acquired in year 2, he might only keep 15%, while Investors (who likely have fully vested preferred shares) take a larger cut.

To be continued....

Welcome in Kimi Antonelli!
31/08/2024

Welcome in Kimi Antonelli!

Q: “why do you like so much cross-country”?A: 😶
21/06/2024

Q: “why do you like so much cross-country”?
A: 😶

Can it be that I end a rally without destroying everything!? 😅
05/02/2024

Can it be that I end a rally without destroying everything!? 😅

is over, I go home from with a 2nd place (again 😶‍🌫️) in 450+ class and a lot of hugs from other competitors who rec...
14/01/2024

is over, I go home from with a 2nd place (again 😶‍🌫️) in 450+ class and a lot of hugs from other competitors who recognized I was undoubtedly going to win both Motul Xtreme Class and 450+ class without refuel problem had in stage 8.
I keep memories of 2 hard and intense weeks, new friendships, incredible landscape and the proudness to thave taken to the very top in the hardest rally in the world an old 500 Husky my14 without any team to support me. Self esteem is beyond the solar system! 😅

Thanks to Fz Factory motorbike preparation (perfect!!) and guys who helped in any way.

What an experience!! 🤩🤩🤩



Alpinestars | Aurora Rally Equipment | Baltic Express LV | Dreams Horizon Charter | Husqvarna Motorcycles | Latvijas Motosporta federācija | Motosports | .italia | Oversuspensionofficial | RALERI s.r.l. | Sail Video System

: after racing 3 days with bad flu, I have reached Senegal and ranking is done:450+ class: P2Motul Xtreme class: P5Over...
13/01/2024

: after racing 3 days with bad flu, I have reached Senegal and ranking is done:
450+ class: P2
Motul Xtreme class: P5
Overall: P26.

Bitterness is the only word that comes out to me: I gave everything I had, climbed up to 1st with a monster 37’ and 1h 10’ gap over 2nd and 3rd in Motul class, then they refueled me in Special Stage 8 with water mixed to gasoline and my engine died. 20 h penalties, night work and restart (illness came in the meantime) so my race was over.
I have climbed up to 2nd in 450+ but I feel that victory has been stolen to me for something that is not related to preparation or performance.
I go home happy to reach Dakar (tomorrow) but with deep sadness in my heart.



Alpinestars | Aurora Rally Equipment | Baltic Express LV | Dreams Horizon Charter | Fz Factory | Husqvarna Motorcycles | Latvijas Motosporta federācija | .italia |Oversuspensionofficial | RALERI s.r.l. | Sail Video System

Water in my tank!!! 😡😡😡From 1st to last in Motul Xtreme class thanks to bad gasoline refuel along stage 7.This is hard t...
11/01/2024

Water in my tank!!! 😡😡😡
From 1st to last in Motul Xtreme class thanks to bad gasoline refuel along stage 7.
This is hard to accept, but I cannot change it. It simply as it is.
I substituted fuel pump and injector in the night. I am also ill with temperature, but will restart today into stage 9 anyway: never give up! 💪

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