Lightspeed Venture Partners
SEPTEMBER 21, 2013
Despite having over 500k downloads and making $450k in revenue over the last 21 months, he had only $185k left in the bank, which meant that he would be out of business in 90 days if he didn’t raise more money. pre money valuation and planned to use the money to market the app. pre money valuation).
Professor VC
JANUARY 17, 2008
One of my comments was that we would likely see more institutionalization of angel groups and syndication of deals among groups. One group charges entrepreneurs "an administrative fee" to present to the group. He also said they typically only invest at a $1 million pre-money valuation or less. Back to the panel.
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David Teten
NOVEMBER 15, 2013
I have frequently heard the expression from other investors, “We can put a lot of money to work here.” This is the psychology that drives VCs to load up a company with more capital, rationalizing that $5m at a $20m pre-money valuation is little different than $10m at a $40m pre-money valuation.
www.paulgraham.com
APRIL 28, 2010
Startups valuations aresupposed to rise over time. So if youre going to sell cheap stockto eminent angels, do it early, when its natural for the companyto have a low valuation. Some angel investors join together in syndicates. Any city wherepeople start startups will have one or more of them. So theyre going to raise $200,000.
www.paulgraham.com
APRIL 28, 2010
Mechanics Angel investors often syndicate deals, which means they join togetherto invest on the same terms. In a syndicate there is usually a"lead" investor who negotiates the terms with the startup. Dont feel like you have to join a syndicate, though. The valuation determines how much stock you get. million, and youget.05/1.05,
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