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A framework to think about pricing seed, angel, and venture capital rounds

This is going to be BIG.

Getting less dilution than standard means that you have to have made fantastic progress, have a world class team, etc. The question then becomes whether or not there's any significant reason to move off of that default. Note that, to even get venture in the first place, you are special.

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Web-Based Worthworm Helps Determine PMV For Startup Investment Purposes

YoungUpstarts

Lobock believes that Worthworm is one of the strongest tools in an investor’s arsenal, providing them with a consistent framework with which to standardize the screening process or later due diligence. “If you are an angel investor and a venture is seeking capital from you, insist on getting its Worthworm report.

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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

Let’s set up a framework. A Framework to Guide You: So putting it all together, you should always be mindful of your personal circumstances and market conditions. But what IS the right amount of burn for a company? Turns out like most things there are no simple answers. Here’s overall what you need to know.

Burn Rate 383
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Cybersecurity startups face market challenges

ReadWriteStart

To stand out, many cybersecurity startups focus on providing unique, cutting-edge solutions, such as artificial intelligence-driven threat recognition and zero-trust security frameworks. Additionally, these down rounds can decrease employee morale, as they may dilute shares or pay cuts, affecting the overall work environment.

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Startup Boards

Both Sides of the Table

This is often true when the action of the board could dramatically affect shareholders such as raising new capital, acquiring new businesses (that drain existing cash or dilute shareholders), selling the company or raising a lot of debt.

Startup 204
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8 Questions to Help Decide if You Should be Raising Money Now

Both Sides of the Table

I thought I’d try to offer a framework for thinking about the topic. So here’s my framework. If you are able to raise money from credible sources at a reasonable dilution percentage then I personally favor getting the round done now and building your business. How much dilution am I going to have to take now?

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How to Divide Founder Equity: 4 Criteria to Discuss

View from Seed

It’s also worth keeping in mind that regardless of how the founders’ common stock is divided, there will be future issuance of stock that will dilute the founders over the lifecycle of the company. Once you have the framework, it’s simply a matter of having the conversation and reaching an agreement.

Equity 315