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How Much Should You Raise in Your VC Round? And What is a VC Looking at in Your Model?

Both Sides of the Table

There’s a quick litmus-test conversation any early-stage VC will have with the founder and it’s one that you should be as prepared for as your elevator pitch. Conversely many VCs believe that constraining cash can often lead to increases in creative solutions at a startup. Founder: “$8–10 million” VC: “What’s your current burn rate?”

Burn Rate 247
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Remind Me Why I Love You? (Why “In Person” is Everything)

Both Sides of the Table

This is a very common scenario when entrepreneurs pitch VCs and frankly is a very common scenario when VCs try to raise money from LPs. At night I had a group dinner where I met 6 new entrepreneurs and hung out with some old friends from law firms, banks and other VC funds. What do I do now? Some were interesting, some weren’t.

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Fundraising Debt And How To Avoid It

YoungUpstarts

Billions of dollars are being poured into companies that have yet to clear the value chasm, as entrepreneurs use early traction that isn’t necessarily financially-oriented, but shows a certain level of uptick or success, to raise capital and convince early stage investors that their horse is the one to bet on.

Cofounder 127
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6 Motivations That Lead To Key Market Transformations

Startup Professionals Musings

Every entrepreneur and every company I know has orbit-shifting intentions. They fundamentally become value seekers; they look for value in every experience, in every conversation. Overcoming execution obstacles is combating dilution, not compromising, for these innovators. The breakthrough innovation creates a new orbit.

Marketing 313
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The Entrepreneur's Guide to Customer Development

Startup Lessons Learned

Brant and Patrick undertook a difficult challenge: to provide a generally accessible introduction to Customer Development, without diluting its impact or dumbing-down its principles. The Entrepreneur’s Guide is an easy read. It is written in a conversational tone, doesnt take itself too seriously, and avoids extraneous fluff.

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Comparing Startup Accelerators

Austin Startup

Re: cash, the more “unbundled” types of accelerators (less formalized, less equity) tend to not provide any cash upfront, but also typically “cost” less in equity, often just 1–2% of your fully diluted capitalization. Anti-Dilution. See: Startup Accelerator Anti-Dilution Provisions; The Fine Print. Market Focus.

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Strategy Roundtable For Entrepreneurs: Non-dilutive Financing Through Revenue Sharing

ReadWriteStart

This partnership speaks to a core philosophy of the program where we encourage entrepreneurs to get as much customer validation as possible before raising too much money, use other people's channels if you can get to them, don't burn too much cash, and all that good fiscal conservative stuff. LetsGiftIt. The answer to the question is neither.

Dilution 114