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Startup Funding – A Comprehensive Guide for Entrepreneurs

ReadWriteStart

These usually play a role in the very early stage of your business, primarily pre-revenue. The seed stage is focused on building the core team, product optimization, exploring avenues for monetization. ? Early-stage. An early-stage investor usually looks at a return of 10 to 15 times.

Startup 150
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Why Startups Should Raise Money at the Top End of Normal

Both Sides of the Table

Early-stage investors in technology startups are only looking for growth-oriented companies that can achieve an “exit&# someday – either via selling your company to a larger company or via an IPO. So rounds tend to be “range bound&# where the top end of the valuation spectrum often being done in boom markets (i.e.

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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

Plus, most early-stage M&A fails so this isn’t likely a good use of capital for a young company). We want a strong balance sheet (um, ok. but that’s our firm’s money on your balance sheet. if you have a good use for it and we’re excited about your company – fine.

Burn Rate 383
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Bad Notes on Venture Capital

Both Sides of the Table

And now I have to explain to team that they’re taking more dilution than they expected if we do a down round. Me: More dilution? A down round? I have never come across a sophisticated A, B or C round venture capitalist who thinks convertible notes are a smart move for entrepreneur or investor.

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How do the sample Series Seed financing documents differ from typical Series A financing documents?

Startup Company Lawyer

In addition, I think that a “peace treaty&# between early-stage investors and startup companies on standard terms (at least at a term sheet level) is a step in the right direction. If new investors get better rights in a future equity financings (such as registration rights, price-based anti-dilution, redemption rights, etc.),

Finance 70
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How to Talk About Valuation When a VC Asks

Both Sides of the Table

Many VCs will have a distribution curve where they’ll do a small number of early-stage deals (say $1.5–3 3 million invested at a $6–10m pre-money), a larger number of “down the fairway” deals ($4–5 million at a $15–25 million pre) and a few later-stage deals (say $8–10 million at a $30–40 million pre).Of

Valuation 324
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How the pre-seed round made a comeback in 2024

VC Cafe

Everyone moved to earlier stage – part of the decline in late stage investing is the ‘baggage’ of companies that previously raised money at inflated valuations that they would struggle to justify in today’s market. I genuinely believe that the next 24-36 months will be a great vintage to invest in early stage.

Valuation 186