Primary shares dilute ownership as new shares are issued, while secondary shares don’t, as they transfer existing shares between investors.

Founders should try to raise money for 18 months. The goal of pre-seed/seed capital is to launch an MVP and acquire a few paying customers.

Liquidation preferences help investors get their investment back when the startup is acquired or liquidated at a lower valuation.

The power law dictates that a lion's share of VC returns comes from a small number of deals while most investments fail to return capital.

When a startup becomes big, its early investors sell their shares to bigger VCs at a profit. This is called a liquidity event.

Startups give ESOPs to employees to compensate for the risk. ESOPs can yield a fortune if the startup you joined becomes successful.

VC investments are illiquid with 5 to 8 years lock-in depending upon the fund. Thus, it requires a higher return than most investments.

In the first 4 months of 2021, more Indian companies became unicorns (startups with at least $1 Bn valuations) than in the entire of 2020.

You need $60,000 in net wealth (Assets – Liabilities) to be in the top 1 % of India which is 32 times the GDP/Capita in India.