Both Sides of the Table
JUNE 30, 2016
How much you raise determines valuation I know it sounds crazy but at the earliest stages of a company your valuation often is determined by how much money you raise. A $15–20 million valuation sounds better than an $8 million valuation, doesn’t it? But people never do. Justin is right. But it’s actually not that silly.
Both Sides of the Table
SEPTEMBER 28, 2014
If you have a very low gross margin (10-30%) it can be very hard to build a large, scalable business because you need to make a lot of sales to cover your operating costs. In startup world low GM almost always equals death which is why many Internet retailers have failed or are failing (many operated at 35% gross margins). Valuation.
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ReadWriteStart
JUNE 1, 2020
Reasons for funding. ? Scale up your operations. One of the most prominent reasons for funding is to scale up your operations, for expansion and achieve economies of scale. Now you may want to scale up your operations or expand your presence. The third reason is to fund your short term operational expenses or working capital.
Startup Professionals Musings
AUGUST 6, 2023
According to more recent statistics , fewer than a third of all crowdfunding operations end up being successful, and the rest have to return anything they do collect. Lack of checks and balances on startup valuations. A startup that is listed on a crowdfunding platform gets no formal pushback or negotiation on its declared valuation.
Startup Professionals Musings
NOVEMBER 25, 2020
According to more recent statistics , fewer than a quarter of all crowdfunding operations end up being successful, and the rest have to return anything they do collect. Lack of checks and balances on startup valuations. A startup that is listed on a crowdfunding platform gets no formal pushback or negotiation on its declared valuation.
Both Sides of the Table
JUNE 22, 2011
In addition to FOMO it is partly driven by massive increase in valuations for earlier-stage companies who raised money at bit seed prices but who still have product risk. million pre-money valuation is now raising $1 million at a $12 million valuation the next investor has nowhere to go but up (or sit out the investment).
The Equity Kicker
JANUARY 25, 2016
On Friday it seemed like everyone in the venture capital industry was again reading about market turmoil, this time the news is that angel investors are pulling back and valuations taking a hit. The best startups capture all the returns so focusing too much on entry valuation is a mistake. I read it too, because it’s a big deal.
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