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

Both Sides of the Table

The other investors around the table didn’t agree nor did the “independent” board members who were willing to turn a blind eye to capital inefficiency since they didn’t have any economic interests that would be diluted by continued fund raising to support a capitally inefficient management team. The deal was done in late 2007.

Burn Rate 263
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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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How and Why To Be an Angel Investor

David Teten

Villalobos & Payne: “Startup Pre-Money Valuation: The Keystone to Return on Investment” 117. Wiltbank & Boeker: “Returns to Angel Investors in Groups” 3,097. approx 1999-07. 1961- 1996. Mason & Harrison: “Is it worth it?

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Asset Management Is A Bizarre Industry Ripe For Disruption

David Teten

Asset management also shows the traditional earmarks of an industry ripe for disruption — most obviously, unhappy customers and extremely profitable incumbents. Despite this, it’s hard to think of good examples of disruption to asset management in the classic, Clay Christensen sense.