article thumbnail

Don’t get hung up on early stage valuation.

Berkonomics

I can’t tell you how many times I’ve walked away from deals where the entrepreneur insists on a start-up pre-money valuation that is so high, no angel could expect to make a return upon the investment, even with a reasonable sales price for the company down the road. The post Don’t get hung up on early stage valuation.

article thumbnail

Don’t get hung up on valuation.

Berkonomics

I can’t tell you how many times I’ve walked away from deals where the entrepreneur insists on a start-up premoney valuation that is so high, no angel could expect to make a return upon the investment, even with a reasonable sales price for the company down the road. Why fight about valuation, or disappoint the founder at the outset?

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Keep It Under Your Hat: Valuation Caps and the $650 Million Sale of MySpace for $125 Million

Gust

Entrepreneurs and investors who have spent any time dealing with convertible debt seed financing transactions are likely to have encountered the subject of valuation caps. Valuation caps can come into play in settings other than seed-stage convertible note financing rounds. Read on for a fuller explanation.

article thumbnail

Can You Trust Any vc's Under 40?

Steve Blank

billion for a company with less than $50 million in sales. Underwriters realized that as long as the public was happy snapping up shares, they could make huge profits on the inflated valuations (regardless of whether or not the company should have ever been public.)

article thumbnail

The Stock Dive: How I Learned to Stop Worrying and Love the Market

This is going to be BIG.

It’s never a good thing to be selling a product for a loss on every sale before you even pay your overhead, or selling something that’s a vitamin, and not medicine. So, yeah, that’s going to come down—especially because they likely got over their skis on valuation. If so, yeah, then I’d say I’d be concerned. But, you know what?

Stock 97
article thumbnail

After Raising $6.7M For Startups And Winning SEC Approval, AngelList Opens Up Investment Platform To More Companies

techcrunch.com

From 2004 to 2007, she helped lead Congresswoman Carloyn Maloney’s community outreach and relations efforts in New York City. No wonder the platform is rumored to be raising a round at a $150 million valuation or more. with a $3 sale. Leena Rao is currently a Senior Editor for TechCrunch. The site is also a data goldmine.

SEC 61
article thumbnail

5 Reasons Why Effective Marketing Makes Your Business More.

Duct Tape Marketing

If indeed you have any vision of selling your business in the future you’ve got to focus on marketing instead of simply focusing on sales. In my opinion, a greater focus on these elements not only creates greater sales, it leads to the creation of a more valuable asset – or something you might indeed be able to sell.