Business Model Cost Entrepreneur Pre-Money Valuation 
Up and Running
SEPTEMBER 19, 2017
That’s because obtaining a pre-money valuation for a concept level technology company in excess of $1 million is difficult, particularly for a startup founder without a proven track record. That is to say, they’d want to be able to control costs and revenues at a high level. Consequently, he passed.
Both Sides of the Table
JUNE 22, 2011
This was an audience of mostly first-time entrepreneurs. It is great for entrepreneurs and great for VCs. So here is what I have been telling entrepreneurs privately for the past 6 months. What a bubble means for each entrepreneur. Still, market amnesia by ordinarily rational actors always surprises me. I believe that.
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Lightspeed Venture Partners
OCTOBER 7, 2012
As he said, “Great innovations solve problems or reduce costs. This does neither, so I’m out” Cuban said, “I see you guys not as entrepreneurs but as wantrepreneurs” I agree with him. In this way, they remind me of the Lifter Hamper entrepreneur. The entrepreneur was clearly desperate.
Lightspeed Venture Partners
SEPTEMBER 23, 2012
The entrepreneurs had made $150k in revenue running classes for four months at a gym in New York, selling out the classes at $35/class. They plan to franchise the model (presumably including selling equipment plus a certification program). Post money valuation = Pre money valuation + Investment.
Lightspeed Venture Partners
NOVEMBER 19, 2012
They believed that they could get customer acquisition costs to the $10-12 range, but as Cuban points out, that was just hope, they had no evidence to back this up. All e-commerce businesses should be examined through the lens of customer acquisition cost and lifetime value. This business can’t work. Corks Away.
Startup Professionals Musings
MARCH 18, 2016
As an entrepreneur looking for professional investors, one of the quickest ways to lose credibility and get rejected is to start with a ridiculously high pre-money valuation. Take a hard look around and add valuation for anything you find in this category. First priority is real revenue, customers and contracts.
Tim Keane
JANUARY 12, 2010
Term-sheets and Valuations: Thinking about Negotiations. Please see later version of this post on May 16, 2010 Entrepreneurs are often not experts in the area of term-sheet negotiations and all of the surrounding issues. Investors sometimes “present” the terms they’d like and expect the entrepreneurs to react.
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