Remove Differentiation Remove Early Stage Remove Marketing Remove Pre-Money Valuation
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Vulture Capital: Why Early Stage VC Could Kill Your Startup

The Startup Magazine

While the rewards may be a boon to their company in the short term, the consequences of accepting outside funding too early can be debilitating. There’s a reason why I refer to early-stage VC funding as vulture capital, and to be honest it’s pretty accurate. Money in Exchange for Control.

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The Changing Structure of the VC Industry

Both Sides of the Table

We are in a bubble (with so many private $1bn+ valuations). 15 years ago we were at the peak of Internet hype with the launch of many over-capitalized businesses with a market size & opportunity was limited. The VC market has right-sized (returned back to mid 90′s levels & less competition). Where are we today?

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8 Questions to Help Decide if You Should be Raising Money Now

Both Sides of the Table

For many businesses you should keep your costs low & your capital raises low until you discover whether you are really on to a big idea where there is market demand. When you see evidence that there is this so called “product / market fit&# then you may be ready for larger amounts of capital. 25% dilution).

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Don’t Pitch A Venture Capitalist Without This Checklist

David Teten

I’ve listed below the points I recommend you cover when pitching your business to early-stage investors, including but definitely not limited to ff Venture Capital. If you are testing the market to see what terms you can get, just say, “We are targeting to raise $X at pre-money valuation of $Y.”

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What to Expect When You're Expecting Venture Capital Returns

This is going to be BIG.

If you could return investors nearly triple their money and mid 20's returns consistently, compared to the 8% long term return in the public equities market, they'd more than accept that. I assumed the following: Seeds are done as a $1mm round on a pre-money valuation of $5mm. Exits are $250mm. How about price?

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Time is the Enemy of All Deals

Both Sides of the Table

million at a $15 million pre-money valuation. We had people hearing through the grapevine that we were about to raise money and new investors started calling us to get in on the deal. If you remember your history the market crashed the next week. Many companies that were in the process of raising money did not.