Remove Entrepreneur Remove Hiring Remove Post-Money Valuation Remove Revenue
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Why Startups Should Raise Money at the Top End of Normal

Both Sides of the Table

I wrote this because over the last decade I’ve seen a destructive cycle where otherwise interesting companies have been screwed by raising too much money at too high of prices and gotten caught in a trap when the markets correct and they got ahead of themselves. Again, prices are expressed as pre-money valuations.

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90 Things I've Learned From Founding 4 Technology Companies

betashop.com

On October 27, 2010 I wrote a blog post about the “ 57 Things I Learned Founding 3 Tech Companies.”. It has been awesome, flattering, and humbling to see that post went viral and has been seen by so many thousands of people — mainly aspiring entrepreneurs — and has been translated into many languages.

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Guy Kawasaki’s 10 Questions to Ask Before You Join a Startup

www.mint.com

If the answer to the question centers around “We will achieve revenue soon so our net will improve and give us more runway,” it means the company is in trouble because no product ever ships on time nor achieves the company’s “conservative forecast.” What is the post-money valuation of your last round? That’s cool.

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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. If you''re worried about the runway, try doing less things.

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Shark Tank Season 4 week 9 breakdown

Lightspeed Venture Partners

He proposed funding the construction of 20 more prototypes in different models, hiring an engineer to think about manufacturing, putting the videos online to get it viral, and then seeing what happened. When asked why the company is worth a $1M post money valuation, he said, “What it comes down to is passion.”

Valuation 107
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Why "Flat Is The New Up" and VC Funds Are Under-Reserved

Seeing Both Sides

For the last five years, it was not atypical for a high-quality Series A company that raised an initial round of capital priced at, say, $5 million on a $5 million pre-money valuation to hit a few important milestones (e.g., Today, those financings are simply not happening. It's a bit like pension funds for.er.auto makers.