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Why Startups Should Raise Money at the Top End of Normal

Both Sides of the Table

So rounds tend to be “range bound&# where the top end of the valuation spectrum often being done in boom markets (i.e. 2007, 2011) and for the hottest of companies and in bad markets for fund raising (2003, 2008) prices test the bottom end of the range. Again, prices are expressed as pre-money valuations.

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The Truth About Convertible Debt at Startups and The Hidden Terms You Didn’t Understand

Both Sides of the Table

As in, “your money into my company will convert at a 15-20% discount to the next round of capital I raise with a maximum price of $8 million pre-money valuation (or whatever the cap was).” I thought we got rid of that s**t in 2003? .” What this did is set the maximum price of the deal.

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