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When Should Startup Founders Discuss Valuation with Seed VCs?

View from Seed

As the seed-stage startup fundraise process has received more transparency in recent years, ranging from published advice on how to raise seed capital to increased availability through AngelList, Funders Club, and various accelerator programs, I’ve noticed another trend emerging.

Valuation 336
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Keep Term Sheets Simple for Quicker Cash to Spend

Startup Professionals Musings

It’s true that Angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. When a company is at its earliest seed stage, the terms tend to be the least complex.

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A Primer on Angel Investment ‘Simple Term Sheets’

Startup Professionals Musings

It’s true that angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. When a company is at its earliest seed stage, the terms tend to be the least complex.

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The Pre-Seed FAQ

K9 Ventures

A Seed round today — like the Series A round of yesteryear — requires some kind of traction or product. In contrast, you *don’t* need much to qualify as a Pre-Seed stage company. Pre-Seed investors should *not* be looking for any kind of traction. Q: How are most Pre-Seed deals structured?

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Keep Term Sheets Simple for Quicker Cash to Spend

Gust

It’s true that angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. When a company is at its earliest seed stage, the terms tend to be the least complex.

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Piercing the Corporate Veil of Sweat Equity

grasshopperherder.com

If there is traction, ok…there are some benchmarks and you can look at seed stage funding rounds. Not that they were trying to take advantage of me necessarily, but it happened because of the deal structure. I think it’s difficult, if not impossible, to value a pre-revenue company with any reasonable accuracy.