article thumbnail

Tiered Valuation Caps

Austin Startup

Under the standard approach, even if the outlook for the company dramatically changes (positively) within 1 month post-closing (which at seed stage can happen), the valuation cap is what it is. The PR story behind that trend — the way it gets sold — is that it’s about saving companies money. Sounds legit.

article thumbnail

The Series A crunch is hitting now. Have we even noticed?

pandodaily.com

If you are raising a seed round now, there are a few things you can do to protect yourself. There are still the same debates on whether or not you should take seed money from VCs. Lastly, seed-stage entrepreneurs who have pushed for the maximum valuation possible haven’t done themselves any favors.