Remove Demand Remove Down Round Remove Later Stage Remove Metrics
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Why Startups Should Raise Money at the Top End of Normal

Both Sides of the Table

The earlier you invest the higher the chances the company won’t work out and thus you pay a lower price than later-stage investors. Another firm we saw tried to raise $15 million at a $60 million pre-money with similar metrics. So how exactly are prices determined? There is no great science to it. Here’s the problem.

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On the Road to Recap:

abovethecrowd.com

Also, they have a strong belief that any sign of weakness (such as a down round) will have a catastrophic impact on their culture, hiring process, and ability to retain employees. Their own ego is also a factor – will a down round signal weakness? A down round is nothing. Get over it and move on.

IPO 40