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When Should Startup Founders Discuss Valuation with Seed VCs?

View from Seed

Using NextView as an example, since we both seek to lead the seed round and only lead during this round, I’ve seen this trend manifest in one of two ways: In a priced round, the entrepreneur will often share their valuation ask (or a stated floor) for the pre-money valuation of their company much sooner in the process.

Valuation 336
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Signaling Pricing Expectations Early in Seed Investment Discussions

Genuine VC

By communicating pricing expectations with potential lead investors, I mean sharing either an “ask” or even stated floor for the pre-money valuation of the company (with a priced preferred round) or explicitly stating a valuation cap (for convertible note round).

Valuation 136
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Knowledge Is Power: Convertible Note Financing Terms, Part IV

Gust

a) payable upon demand as of the closing of such transaction; or. (b) This is particularly true under the severe time pressure that tends to accompany M&A. “ Payable upon demand as of the closing of such transaction ” is the fallback position described above as #1.

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