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A VC’s take on the Season 5 premier of Sharktank

Lightspeed Venture Partners

to fund the company at a $6M post money valuation from a number of investors including Selena Gomez. 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.

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Why VC’s Don’t “Crossover” Invest

Agile VC

2) Differential Cost Basis – Suppose Acme Ventures III invested in the Series A of Startup X and then made follow-on investments in the Series B and C. Suppose Acme IV invests in the Series D and 6 months later there’s an acquisition offer for Startup X that’s 50% higher than the Series D post-money valuation.

LP 178
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90 Things I've Learned From Founding 4 Technology Companies

betashop.com

Very hard to do, but it’s what differentiates great companies from good companies. That means if you’re taking money with a $5M post-money valuation, the expectation is that you are building for a minimum $50M exit. $10M 10M post-money valuation = $100M target. 500M valuation = $5B target.