Remove Entrepreneur Remove Management Remove Operations Remove Pre-Money Valuation
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Why Raising Too Much Money Can Harm Your Startup

Both Sides of the Table

So the temptation would be to ask for $5 million because that implies a $20 million pre-money valuation if you’re able to only give away 20% or a $15 million pre-money valuation of investors require 25%. A $15–20 million valuation sounds better than an $8 million valuation, doesn’t it?

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Valuations 101: Scorecard Valuation Methodology

Gust

In 2011, the valuation of pre-revenue, start-up companies is typically in the range of $1.5–$2.5 million and is established by negotiations between the entrepreneur and the angel investors. Angels typically invest in companies operating in industry sectors with which they are familiar. million for pre-revenue companies.

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Want to Know How First Round Capital was Started?

Both Sides of the Table

Howard Morgan earned a PhD in Operations Research/Computer Science in 1968. They did not take salaries during the first two years and invested more money in the firm than they received from management fees. SecondRound.com – This is a proprietary CRM system that was built to help manage the fundraising process.

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How to Fund Your Startup Without Losing Control

Up and Running

Background: Justin Klemm’s analytics and website uptime startup, Ghost Inspector , wants to revolutionize the way businesses manage their ecommerce funnels. By contrast, obtaining a pre-money valuation of $5 million for a business with a new viable product and even very minimal sales is somewhat reasonable.

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How and Why To Be an Angel Investor

David Teten

Angel investors are generally former entrepreneurs and/or executives, who invest in privately-held, early-stage companies. Villalobos & Payne: “Startup Pre-Money Valuation: The Keystone to Return on Investment” 117. Lastly, angels want to serve as mentors to the next generation of entrepreneurs.

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The Great VC Ice Age is Thawing (for now) – Part 1 of 3

Both Sides of the Table

But any entrepreneurs raising capital should keep in mind that this opening of the markets could possibly be temporary. They should heed the age old advice that raising slightly more money while you can is always better than trying to optimize future valuations. disclosure: I am thankfully no longer on this board).

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How Investors Can Bring More Than Just Money To The Table

YoungUpstarts

For startup founders and CEO’s it’s also just as common to see them place too much focus on the amount of money raised, and the pre-money valuation, rather than the value that each investor can bring to the table. Entrepreneurs, business owners, senior managers at large corporations. Operational Expertise.