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Time is the Enemy of All Deals

Both Sides of the Table

million at a $15 million pre-money valuation. We had people hearing through the grapevine that we were about to raise money and new investors started calling us to get in on the deal. Had I delayed my fund raising in 99/00 by even 3-4 weeks I’m convinced I would not have raised any money at all. We hit sub 2 weeks.

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How to Start a Startup

www.paulgraham.com

If you give an investor new shares equal to 5% ofthose already outstanding in return for $100,000, then youve donethe deal at a pre-money valuation of $2 million. At this stage the company is just a bet. Ididnt realize that when we were raising money. How do you decide what the value of the company should be?

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