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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. Again, prices are expressed as pre-money valuations.

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The Changing Venture Landscape

Both Sides of the Table

They might be ideas they hatch internally (via a Foundry) or a founder who just left SpaceX and raises money to search for an idea. The legends of Silicon Valley?—?two These days $10 million is quaint for the best A-Rounds and many are raising $20 million at $60–80 million pre-money valuations (or greater).

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How to Fund Your Startup Without Losing Control

Up and Running

That’s because obtaining a pre-money valuation for a concept level technology company in excess of $1 million is difficult, particularly for a startup founder without a proven track record. million early-stage raise that involved pitching to over a dozen PE firms, which took months to negotiate.

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Strategy Roundtable: Try To Get At Least $2M Pre-Money In Seed Round Valuation

ReadWriteStart

Bottom line, early stage equity is very, very expensive. So at any point, if you are trying to raise money, and you are hearing from investors that you are too early and have too little validation, it may be a good thing. Then Liana Thompson pitched Trendy Loot , a very early stage deal site for low-end jewelry.

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LinkedIn: The Series A Fundraising Story ? AGILEVC

Agile VC

I thought I’d revisit it and share the story… First, you have to rewind mentally to early 2003. Silicon Valley is still emerging from the tech bubble and massive downturn of late 2000-2002. round which closed in November 2003, and the pre-money valuation between $10 million and $15 million.

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A Great Discussion with @skupor @davemcclure @msuster on Changes in the VC Industry

Both Sides of the Table

I believe the middle isn’t being “gutted” but rather is being supplemented by “opportunity funds” and “growth funds” that sit side-by-side “core funds” allowing the firms to stay small and nimble while still being able to grab prorata rights of their best early-stage investments.

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2011 Valuation Survey of North American Angel Groups

Gust

To provide some reference points, I surveyed thirteen angels groups in North American to determine their recent experience in negotiating the pre-money valuation of pre-revenue companies. See the 2010 data reported here: Current Pre-money Valuations of Pre-revenue Companies. Silicon Valley.