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The Due Diligence Hierarchy of Pain

View from Seed

When a founder is raising money, he/she should expect that any serious investor will conduct some level of due diligence before getting to yes. Seed stage companies will mostly face questions around the team and market. Finally, you can actually use the due diligence process to your advantage in building momentum for your round.

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Web-Based Worthworm Helps Determine PMV For Startup Investment Purposes

YoungUpstarts

“The reality is that there has not been a reliable, simple, or cost-effective way to calculate an early stage company’s valuation – which is why so many entrepreneurs and angel investors get it wrong,” says Alan Lobock, co-founder of Worthworm. ” Ideaspotting investment pre-money valuation valuation Worthworm'

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Startup CTO or Developer

SoCal CTO

I’ve been having discussions with several people recently about the role of the CTO (Chief Technology Officer) in very early stage companies. However, I’ve now begun questioning how and what an early-stage / startup CTO should be. It makes this early stage challenging. What technology research is required?

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How Private Equity and Venture Capital Investors Are Eating Their Own Dogfood

David Teten

In venture capital in particular, early-stage companies are often operating in frontier industries, where the rules are unpredictable and conventional analytic frameworks may be misleading. 5) Due diligence. The Pocket Negotiator is very early-stage attempt to aid in the negotiating process itself. .

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Is Strategic Money an Oxymoron?

Both Sides of the Table

So I thought I’d try to lay out a framework for how you should think about it as many you will inevitably be faced with this experience. I personally recommend it in the following situation: When you have your A round and/or B round done, the business is progressing well and you’re not early stage.

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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

Seed-stage compatible: Like traditional equity VC investors, Flexible VCs accomodate early-stage investment risk within their portfolios better than a traditional RBI funder. Less established regulatory framework. . Growth stage and beyond: clear pathway to outcomes of over $1 billion. Short track record.

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Revenue-Based Investing: A New Option for Founders who Care About Control

David Teten

Though RBI will displace some traditional equity VC, its much bigger impact will be to expand the pool of capital available for early-stage entrepreneurs. . However, only recently have early-stage companies started to use this model at any scale. . So what is Revenue Based Investing? All term sheets are a negotiation.

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