Both Sides of the Table
SEPTEMBER 23, 2010
If you have a “lead&# investor agreed then the price is already set and you don’t have to worry about price. we’re intentionally not going wide with this deal. We discuss deal structures. I usually say something like, “I know a couple of people over there. kind of way. I think so.
View from Seed
OCTOBER 21, 2014
Sharing these pricing expectations early with potential lead investors fundamentally qualifies your conversations, but it also runs the risk of prematurely losing a potential financing partner, or else it can reduce options to maximize your fundraise outcome. And as my partner Rob Go likes to say, “Time kills all deals.”).
Genuine VC
JULY 30, 2012
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). It’s like opening a job interview by sharing salary requirements.
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