Remove Entrepreneur Remove Post-Money Valuation Remove Revenue Remove Technology
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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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Shark Tank Season 4 week 4 breakdown

Lightspeed Venture Partners

They won a design award at a trade show, but have no revenue and no orders. This does neither, so I’m out” Cuban said, “I see you guys not as entrepreneurs but as wantrepreneurs” I agree with him. In this way, they remind me of the Lifter Hamper entrepreneur. The entrepreneur was clearly desperate.

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Is it Time for You to Earn or to Learn?

Both Sides of the Table

I often have career discussions with entrepreneurs – both young and more mature – whether they should join company “X&# or not. Let’s assume that the company raised it at a normal VC valuation, which means it gave up 33% of the company and thus $5 million / 33% = $15 million post-money valuation.

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Shark Tank Season 4 week 9 breakdown

Lightspeed Venture Partners

He anticipates using the money to build autocad drawings, get a patent and start manufacturing. Robert thought that the idea was indefensible without proprietary technology or a patent. 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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90 Things I've Learned From Founding 4 Technology Companies

betashop.com

90 Things I’ve Learned From Founding 4 Technology Companies. On October 27, 2010 I wrote a blog post about the “ 57 Things I Learned Founding 3 Tech Companies.”. Build all of your own technology. Be technical and understand how technology is built. 10M post-money valuation = $100M target.