Remove Early Stage Remove Marketing Remove Metrics Remove Post-Money Valuation
article thumbnail

Why Startups Should Raise Money at the Top End of Normal

Both Sides of the Table

2 preamble issues having read the comments on TC today: 1: I know that the prices of startup companies is much great in Silicon Valley than in smaller towns / less tech focused areas in the US and the US prices higher than many foreign markets. I can’t control the market. Private markets for stocks are the opposite.

article thumbnail

So What is The Right Level of Burn Rate for a Startup These Days?

Both Sides of the Table

It’s a very personal topic and I’d like to offer you a framework to decide for yourself, based on the following factors: How Long is it Taking to Raise Capital at Your Stage in the Market? Go hard and hope that the market will validate your innovation even if the price may be higher than the market may want to bear.

Burn Rate 150
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Bad Notes on Venture Capital

Both Sides of the Table

There were no metrics. Him: On metrics. It’s simply what a market is willing to pay based on a future belief that your company will grow and non-linear rates and be worth much more in the future. If we priced it based on any metrics your company would likely be worth less than 7 figures at your A round.

article thumbnail

Why the New Seed Might Be a Bad Seed

This is going to be BIG.

So whereas seed rounds five years ago may have been less than a million dollars on a pre-money valuation of three or four million, today''s seed is up and over a million and usually closer to two million, with post money valuations nearing $10 million. in seed money instead of $1.5M Why not raise $2.5M

article thumbnail

Bad Notes on VC

Gust

There were no metrics. Him: On metrics. Me: There is no rational explanation for valuations of A round companies by ANY objective financial measure. It’s simply what a market is willing to pay based on a future belief that your company will grow and non-linear rates and be worth much more in the future. Your A round?