Both Sides of the Table
JUNE 30, 2016
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.
VC Adventure
JUNE 14, 2022
Indeed, many firms even institutionalize the practice of providing help to portfolio companies through extensive platforms that may include PR, talent, marketing, technical, and other help (sometimes offered for free, sometimes offered ads a pay-for-service, but often at below-market rates for those services).
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Steve Blank
SEPTEMBER 5, 2018
Startups with huge burn rates – building leases, staff, PR and advertising – ran out of money. What matters to investors now is to drive startup valuations into unicorn territory (valued at $1 billion or more) via rapid growth – usually users, revenue, engagements but almost never profits. Then one day it was over.
VC Cafe
APRIL 4, 2024
By the way, this not just about marketing or PR. Despite being less than 2 years old, Mistral is now looking to raise funding at a $2 billion valuation in December 2023. However, this challenge also presents an opportunity for those who can strategically differentiate themselves and capture the attention of their target audience.
Both Sides of the Table
JUNE 22, 2011
In addition to FOMO it is partly driven by massive increase in valuations for earlier-stage companies who raised money at bit seed prices but who still have product risk. million pre-money valuation is now raising $1 million at a $12 million valuation the next investor has nowhere to go but up (or sit out the investment).
Both Sides of the Table
APRIL 26, 2016
But often this doesn’t tell the whole story because often companies are also spending money on PR and other marketing activities in order to support the sales process. Generally you should take your full marketing spend including PR divided by your customers acquired to get your “fully loaded CAC.” That is what finances rapid growth.
Austin Startup
SEPTEMBER 10, 2017
TL;DR: Using a “tiered” valuation cap structure in a convertible note or SAFE can provide flexibility that bridges the gap between (i) what founders expect their company to be worth in the near future, and (ii) what investors are comfortable accepting now. Did you get a “good” valuation? What a valuation cap isn’t.
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