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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. As a thumb rule, try to get enough validation so that you can get to at least a $2 million pre-money valuation before raising equity capital. That is debt financing that converts into equity at the Series A valuation once the price for that is set. (I Well, I don't.

Valuation 119
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Strategy Roundtable: Open Opportunities in Cloud Computing and Rural BPO

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They already have several customers including some telcos, and are at about $350,000 in revenues. Whether it is credit or equity, funding is very, very tight. Because customer financing equals revenue, not equity. Gio expects to get to about $500,000 by the end of this year and asked me for advice on venture funding.

Cloud 115
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Strategy Roundtable For Entrepreneurs: Non-dilutive Financing Through Revenue Sharing

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And, oh by the way, we also really like the idea of the 1M/1M entrepreneurs building valuation and negotiating leverage through these business development efforts, instead of signing off large chunks of their company in form of equity early on. million in revenue. The business is already profitable with $2.9 Photo by nosheep.

Dilution 114
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Strategy Roundtable For Entrepreneurs: 1M/1M Announces Partnership With MAD Incubator, Malaysia

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This is our first major partnership with an incubator whereby MAD will adopt the 1M/1M methodology to foster Silicon Valley-style technopreneurship in Malaysia. Also, the business is primarily on CD-ROMs right now, but the good news is that the CD-ROM product is selling and generating revenue.

Malaysia 114
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Startup Strategy Roundtable: Top 10 Tech Trends To Watch

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Jimmy already has about 65 customers and about a million dollars in annual revenue. At this point, he can grow organically and leverage channel partners and other creative modes of non-equity financing and preserve equity as much as possible. Sramana Mitra is a technology entrepreneur and strategy consultant in Silicon Valley.

Senegal 117
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Strategy Roundtable For Entrepreneurs: Twitter, LinkedIn - Why Not Affiliates?

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Finally, we had a discussion on Adam's proposal to sell 20% of his equity for $50,000, which I thought was preposterous. She is a Silicon Valley entrepreneur and strategy consultant, she writes the blog Sramana Mitra On Strategy , and is author of the Entrepreneur Journeys book series and Vision India 2020. Photo by ilco.

Affiliate 117
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Strategy Roundtable: Professional Investors Do Not Invest In $20 Million Markets

ReadWriteStart

These are areas that may be gaps in the portfolio of large companies, and are perfect for M&A deals in three to five years after building enough validation and $10-$20 million in revenue. Raymond has built a nice business through efficient distribution deals and will do about $250,000 in revenue this year.