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Why Startups Should Raise Money at the Top End of Normal

Both Sides of the Table

Then you can do a little bit of research and find out that very few companies ever achieve this valuation in a trade sale so you’re clearly gunning for an IPO. You’re unlikely to want to make this sort of investment with the product or the market not yet validated. Again, prices are expressed as pre-money valuations.

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The Changing Venture Landscape

Both Sides of the Table

A-Rounds used to be $3–7 million with the best companies able to skip this smaller amount and raise $10 million on a $40 million pre-money valuation (20% dilution). These days $10 million is quaint for the best A-Rounds and many are raising $20 million at $60–80 million pre-money valuations (or greater).

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How does someone get a meeting with angel investor David S. Rose?

Gust

I almost never invest in ideas or plans, so you’ll need to have a company and at least a product, if not customers. I’m also allergic to funding “bridges to nowhere”, so I would like to hear your explanation of what you are going to do if no money appears to follow your seed round.

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So What is The Right Level of Burn Rate for a Startup These Days?

Both Sides of the Table

In other words, raising $2 million at a $6 million pre-money valuation has always been easier & quicker than raising $20 million at any valuation. While there is no “one size fits all” I used to give the advice that you should plan about 4.5

Burn Rate 150
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Pre-seed is the new seed

Hippoland

Then I asked him about his metrics, which are good, but they are were not at series A level. There’s a lot of work to do to prepare to raise money at this pre-seed stage. It could be building an early version of the product. Or even doing pre-sales or lead generation well before having a product.

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LinkedIn: The Series A Fundraising Story ? AGILEVC

Agile VC

Yes… he was a very successful PayPal exec and previously co-founder & VP Product of SocialNet. Not long after the product launch we began the initial conversations with VCs for a Series A round. round which closed in November 2003, and the pre-money valuation between $10 million and $15 million.

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Pre-seed is the new seed

Hippoland

Then I asked him about his metrics, which are good, but they are were not at series A level. There’s a lot of work to do to prepare to raise money at this pre-seed stage. It could be building an early version of the product. Or even doing pre-sales or lead generation well before having a product.