Remove Business Model Remove Dilution Remove Early Stage Remove Partner
article thumbnail

How the pre-seed round made a comeback in 2024

VC Cafe

To reduce the impact of dilution, the expectation is that startup valuation should more or less double between the pre-seed to the seed, and seed to series A (ideally backed by reasonable traction/ revenue multiples). I genuinely believe that the next 24-36 months will be a great vintage to invest in early stage.

Valuation 186
article thumbnail

How to Invest in Startups – Indian Edition

The Startup Magazine

At this stage, the idea is pitched mainly to family and friends. It is here that the groundwork is laid and the business model developed. A business plan is drawn up to attract investors and partners. The legalities of starting the business are addressed to create a structure for attracting funding.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

6 New Venture Funding Realities To Guide Your Efforts

Startup Professionals Musings

They have too many highly paid partners, fat fees, an aging corporate infrastructure and difficulty raising money from institutions. As lifecycle investment partners, they have become weighted down with portfolios still recovering from the economic downturn. Super angels are individuals or small teams using their own money.

article thumbnail

Flexible VCs With Structures Between Equity and Revenue-Based Investing

David Teten

(co-written with Jamie Finney, Founding Partner at Greater Colorado Venture Fund. VI: Revenue-based financing: The next step for private equity and early-stage investment. VII: Flexible VC, a New Model for Companies Targeting Profitability. His work on VC and small communities can be found at greatercolorado.vc/blog.

Equity 78
article thumbnail

Flexible VC, a New Model for Companies Targeting Profitability

David Teten

(co-written with Jamie Finney, Founding Partner at Greater Colorado Venture Fund. Similar to the explosion of seed funds in the past decade, we (and some limited partners too ) believe these Flexible VCs are on the forefront of what will become a major segment of the venture ecosystem. FLEXIBLE VC VS. OTHER VENTURE CAPITAL MODELS.

article thumbnail

10 Tactics To Shorten Your Race To Cash-Flow Positive

Startup Professionals Musings

In my experience as a business advisor and occasional investor, many of you won’t make it that far, succumbing to the high costs of getting those first customers, funding an initial inventory, and building an operational support process. Negotiate bartering deals versus cash contracts. Negotiate a line-of-credit with a financial institution.

Dilution 404
article thumbnail

6 Insights To Current Funding Trends For Your Startup

Startup Professionals Musings

They have too many highly paid partners, fat fees, an aging corporate infrastructure and difficulty raising money from institutions. As lifecycle investment partners, they have become weighted down with portfolios still recovering from the economic downturn. Super angels are individuals or small teams using their own money.