Remove Hiring 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

It is a truism that with more capital you will hire people more quickly and spend more liberally whether it’s on external contractors, PR firms, attending events, doing legal work (trademarks, patents) or whatever. A $15–20 million valuation sounds better than an $8 million valuation, doesn’t it? million or $4 million.

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How to Fund Your Startup Without Losing Control

Up and Running

They allow you to hire more people, purchase new technology, and establish new business connections, among many other benefits. Background: Justin Klemm’s analytics and website uptime startup, Ghost Inspector , wants to revolutionize the way businesses manage their ecommerce funnels.

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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 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.

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In VC deals, Price Doesn't Matter - But The "Promote" Does

Seeing Both Sides

Year in, year out, Thus, VCs and entrepreneurs are not operating on an equal playing field when it comes to negotiating financings and interpreting the impact of the terms involved. And if they don't focus on the pre-money, they focus on their ownership position after the financing, irrespecive of the amount of capital that was raised.

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How to Fund a Startup

www.paulgraham.com

And if trouble withinvestors is one of the biggest threats to a startup, managing themis one of the most important skills founders need to learn. To be a startupyou need to be the band that sells a million copies of a song, notthe band that makes money by playing at individual weddings and barmitzvahs.

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How to Start a Startup

www.paulgraham.com

One of the best tricks I learned during our startup was a rule for deciding who to hire. And when businesspeople try to hire hackers, they cant tell which ones are good.Even other hackers have a hard time doing that. But this is just the kindthat tends to be open source: operating systems, programminglanguages, editors, and so on.

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