How can you raise multiple rounds but still come out like Zuckerberg? He still returned a lot to investors without ceding control to the board.
Has VC plugged those holes?
If you are not posting exponential growth, then you will likely give up more and more control with each subsequent round.
Any decent lawyer can setup voting and non voting stock, giving founders guarantees of control even if they lose a majority of ownership. Similarly you can award yourself stock at each round. But VCs are not fools. Either your product is amazing and they really believe in you (and will accept no control and possible dilution). Or they don't and you will have to cede at least some control to get funding.
1. Bootstrap first, then raise one or more VC rounds.
2. Go typical VC route (angel/pre-seed/seed, Series A, etc.), but skip a round or, better, two.
3. Establish a multi-class equity structure, where a) founders are issued equity with increased voting power (typically, 10+ votes per share vs. 1 vote per share for common [and sometimes even preferred] shares) or b) founders' equity has voting power, while common shares have zero voting power (more often used for crowdfunding and Reg D private offerings). There is an extensive debate on advantages, disadvantages and ethical aspects of this approach.
4. Use alternative funding approaches (e.g., SMB loans, asset-based lending and revenue-based lending).
P.S. Hi from ATL! :-)
I've got a CapEx/research heavy project that I'm a bit anxious about funding myself, so I'm trying to sell some lower hanging fruit first.
Are you working on a startup here? :)
While each of the approaches that I mentioned above is best suitable for certain types of companies (and circumstances), the list as a whole is generic and comprehensive enough.
Re: CapEx/research-heavy projects -- Interestingly enough, I'm in a pretty much the same situation, as I'm working on my science-focused startup (currently as a side project) and using the same framework for deciding between potential funding approaches. Perhaps, we should talk in private and exchange our thoughts and experiences as well as maybe consider some collaboration (especially in case if you decide to abandon your idea) - your skillset and interests are potentially a good match. :-)
Feel free to reach me at aleksandr dot blekh at Gmail service.