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Do the Math

Austin Startup

Further, you demonstrate on your spreadsheet that a venture return to early investors is plausible at a valuation that gives you enough equity to get the job done and to take care of you and your team at exit time. But, the manner in which you get paid can swing your valuation considerably.

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Understanding a VC’s Seed Funding Policy is Critical

Both Sides of the Table

I think the issue was mostly framed initially by Chris Dixon in his article The Problem with Taking Seed Money from Big VC s. If we can’t agree on price I tell entrepreneurs that they can raise money and say “GRP will speak for half of the round.&# Done – the only signal is positive.

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Figuring Out FourSquare

Seeing Both Sides

million in its series A financing and kept the burn rate at less than $100k per month to make he money last. Dennis wrote a great post at the time of the financing that showed just how product obsessed he was, even after taking the seed money. Advertising isn't cool."). Modest burn : the company only raised $1.35

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How to Start a Startup

www.paulgraham.com

Because so little money is involved, raising seedcapital is comparatively easy-- at least in the sense of getting aquick yes or no. Usually you get seed money from individual rich people called"angels." the seed stage, investors dont expect you to have an elaboratebusiness plan. This is calledseed capital.

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How much capital should you raise?

Version One Ventures

A SaaS startup with immediate monetization options usually needs to raise way less capital than an advertising-driven business that can generally only monetize once it reaches a certain scale. Keep funding to a minimum until you have found a product-market fit Early rounds are particularly expensive, because company valuation is low.

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Top Startup Advisor Paul Graham Just Warned Against Taking Google's Money

www.businessinsider.com

Advertising. These Spooky Cinemagraphs Will Radically Change Online Advertising. This Chart Shows Why VCs Are Willing To Give Hyped Startups Absurd Valuations. Parse, one of the most-anticipated startups in Silicon Valley these days , went through Y Combinator last year and raised seed money from Google Ventures , for example.

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The Series A crunch is hitting now. Have we even noticed?

pandodaily.com

If you are raising a seed round now, there are a few things you can do to protect yourself. There are still the same debates on whether or not you should take seed money from VCs. Lastly, seed-stage entrepreneurs who have pushed for the maximum valuation possible haven’t done themselves any favors.