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NextView’s Greatest Hits

View from Seed

At NextView Ventures we have written many pieces about venture capital — how to raise it, build your business, engage with investors, iterate your product, navigate expanding industries, etc. What Are Your Valuation Expectations? Rethinking the Standard Fundraising Deck “I’d make it crystal clear what your product actually does.

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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

We’re going to start aggressively spend money on marketing our product. but that’s our firm’s money on your balance sheet. Gross margin (GM) is the amount of profit you make per sale of your product or service taking into account your total costs of selling that product or service.

Burn Rate 383
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The $10 Million Photo and Other VC Stories

ReadWriteStart

They really wanted to invest, but it was the beginning of the bubble, and I wanted (what was then) an absurd valuation. All we had were six slides, and I wanted a $10 million post-money valuation. We had gone back and forth with them on valuation, but this was a new firm and they wanted to close a deal with us.

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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. million post-money valuation with no revenue.

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Revisiting Paul Graham’s “High Resolution” Financing

Both Sides of the Table

Paul Graham’s assertion that “any startup founder can tell you the most common question they hear from investors is not about the founders or the product, but “who else is investing?&# I argued it in my post on how social proof helps fund raising with angel investors. When I’m in, I’m in.

Finance 286
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Want to Know How VC’s Calculate Valuation Differently from Founders?

Both Sides of the Table

How VC’s Calculate Valuation : We walked through a standard deal where you raise $1 million at a $3 million pre-money valuation leading to a $4 million post money valuation. Industry standard post your first round of funding will be 15-20%. Those options need to come from somewhere.

Valuation 405
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A Guide to Using Authority & Social Proof in Fund Raising

Both Sides of the Table

Because I built two SaaS companies and sold my second one to Salesforce.com (where I then took on the role of VP Products) I am often asked to look at SaaS and/or sales-oriented deals for others. Obviously I’m assuming that you have a great product and/or strategy.