Business Plan Blog

DECEMBER 10, 2013

The most important principle of startup fundraising that every entrepreneur needs to know is: raise enough capital to achieve a set of milestones that will allow the company to attract the next round of investment. Product Development. In your pitch to FFF investors you told them that there was a need for your product in the market.

Angel Investor 55

Angel Investor Intellectual Property Seed Capital Advisory Board 55

View from Seed

SEPTEMBER 13, 2018

Over the past five years, we’ve witnessed an Atomization of the Seed Stage. Early fundraising is no longer a one-and-done fundraise of a single round of Seed capital subsequently followed by a Series A 12–18 months later. How much total capital has been put into the company since founding. 100K in MRR was cited).

Seed Stage 137

Seed Stage Post-Money Valuation Valuation Startup 137

Feld Thoughts

JULY 29, 2011

Finance Friday’s gets off the ground with today’s post by introducing you to an imaginary startup, the entrepreneurs that we’ll being following throughout the series, and their first challenges: splitting up the founders’ equity and addressing the case where one of the founders provides the initial seed capital for the business.

Equity 137

Equity Finance Pre-Money Valuation Denver 137

Gust

SEPTEMBER 5, 2012

Turn the question on its head: How could it make sense to lend money to a brand new, seed-stage company with no revenue, no products, and no collateral? (You Advising investors, I would advocate for traditional convertible notes (with a valuation cap) over this new structure. How can this possibly make sense?

Finance 134

Finance Convertible Security Equity Seed Stage 134

Business Plan Blog

NOVEMBER 22, 2013

A major piece of the business plan will be your capitalization strategy demonstrating the milestone timeline discussed above as well as the effects of accomplished milestones on the company’s future valuation. A fair amount of your FFF funding will likely go towards product development. Founding Team, Key Hires, Advisory Board.

Intellectual Property 55

Intellectual Property Advisory Board Startup Seed Capital 55

Rob Go

MAY 2, 2016

Actually, the average in the first half of the fund was quite a bit lower, but during this period (2011–2014) there was a pretty dramatic rise in seed stage valuations overall. The actual profile of “seed stage” companies started to vary quite a bit as well. I think this is because smaller seeds lead to smaller teams.

Seed Stage 28

Seed Stage Dilution Valuation Seed Capital 28

Feld Thoughts

JULY 14, 2015

Assuming equity is raised at or above that cap, the total dilution, before the new money, is 16.6% (equivalent to an equity financing of $1m at a $6m post money valuation. The company spends the $1m building and launching their first product. The product gets a lot better. So they recapitalize the company.

Recapitalization 70

Recapitalization Pre-Money Valuation Post-Money Valuation Angel Investor 70

Rob Go

NOVEMBER 30, 2012

Because time is often the most precious resource for seed funds, it is increasingly important to make every investment more “impactful” in the case of success. This means greater focus on ownership, pre-money valuations, and dollars in. We see more and more funds “walk away” if they can’t get the numbers they hope to get.

Seed Stage 55

Seed Stage Pre-Money Valuation Dilution Early Stage 55

VC Cafe

JULY 5, 2010

A s venture funds struggle to raise money in Israel, seed capital, one of the earliest and riskiest stages of investment, is becoming harder and harder to secure. Secondly, we are selling a fixed investment product – a fixed number of investors, a fixed buy-in and a fixed number of portfolio companies.

Technical Review 106

Technical Review Software Review Seed Stage 106

techcrunch.com

FEBRUARY 19, 2010

Not a big shock, but things don’t look pretty, especially in the venture capital world. According to VCs, there’s been a 65% decrease in up-rounds (where a company gets a bigger valuation) in the last six months and more than 60% of those polled expect a longer wait for an exit. A lot of the stats weren’t surprising. Translation?

Venture Capital 62

Venture Capital Technical Review Sweat Equity Valuation 62

Steve Blank

MAY 9, 2017

And to today, when its major product is simply innovation. the wave of semiconductor startups in the 1960’s/70’s, the emergence of Venture Capital as a professional industry, the personal computer revolution in 1980’s, the rise of the Internet in the 1990’s and finally. Today startups build products differently.

Restful 243

Restful Silicon Valley Puerto Rico San Jose 243