Business Model Cost Pre-Money Valuation Startup 
Up and Running
SEPTEMBER 19, 2017
Capital investments are like gasoline on a startup business’s metaphorical fire. They allow you to hire more people, purchase new technology, and establish new business connections, among many other benefits. If you’re like most startup CEOs, your startup has been your personal fiefdom and baby.
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).
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
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. Future revenue projections are not relevant at the pre-revenue stage. You look like a chump, and probably won’t like their low-ball response.
Tim Keane
JANUARY 12, 2010
Startups and angels: Along the way to success. Term-sheets and Valuations: Thinking about Negotiations. 3] However, if they are built bottom up, they demonstrate and make explicit a range of business model assumptions the entrepreneur is using to think about his business and its revenue model.
Lightspeed Venture Partners
SEPTEMBER 23, 2012
The right number to focus on is pre money valuation as that is how an investor is valuing the company before the investment. Post money valuation = Pre money valuation + Investment. post money valuation and a $1.35M pre money valuation.
Lightspeed Venture Partners
OCTOBER 7, 2012
As he said, “Great innovations solve problems or reduce costs. As Cuban pointed out, this is a “down round” Zomm is seeking $2M for 10% of the company, implying an $18M pre money valuation today. So the entrepreneur was willing to accept a valuation more than $10M lower than a previous valuation.
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. 75,000 for 10% implies a $675,000 pre money valuation.
Expert insights. Personalized for you.
94 
Let's personalize your content