OnlyOnce

JULY 26, 2018

Or you negotiate the highest possible valuation from a new lead investor, only to discover that new lead investor, now on your Board, expects you to triple it in four years and is way out of alignment with the rest of your cap table. On the other side, what’s an example of a “good” loss?

Cap Table 48

Cap Table Lead Investor Valuation Reputation 48

www.paulgraham.com

OCTOBER 23, 2010

August 2010 Two years ago I wrote about what I called " a huge, unexploitedopportunity in startup funding :" the growing disconnect betweenVCs, whose current business model requires them to invest largeamounts, and a large class of startups that need less than theyused to. forstartups was to find one angel to act as the lead investor.

Startup 93

Startup Valuation Non-Compete Deal Flow 93

reidhoffman.org

NOVEMBER 12, 2013

But with so many investors still licking their wounds from the dot-com bust, many focused on proven business models, such as advertising or e-commerce. As a result, we knew that our pitch would need to steer into investors’ biggest concern: the lack of revenue. The general rule is one business model drives the business.

Entrepreneur 111

Entrepreneur Revenue Viral Networking 111

Reid Hoffman

JANUARY 26, 2021

In many cases, the CEO is the only member of management who serves on the board. As an entrepreneur, the basic question you must ask yourself is whether the prospective board member can help you achieve the upside – and also manage the downside. You can listen to the podcast here, or search for Greymatter Podcast in your podcatcher.

Startup 36

Startup Equity Early Stage Green 36

Professor VC

APRIL 1, 2010

While this may certainly be the case with unsophisticated angels (much less of these now) or in cases with no lead investor, Id argue the opposite. In my experience, venture investors are more focused on percentage ownership, which obviously requires a trade-off with the amount invested and valuation.

Term Sheet 32

Term Sheet Angel Investor San Jose Venture Capital 32

Professor VC

OCTOBER 20, 2009

In how many of those were you a lead investor? What percentage of your members are not active angel investors (i.e. At Sand Hill, we are very active and often lead investor and Series A board representative. I am an active angel investor and on the board of Sand Hill Angels. Average size?

Angel Investor 35

Angel Investor Due Diligence San Jose Silicon Valley 35

Professor VC

JANUARY 20, 2009

Mid-way through the process, we took another cut at our business plan and built a model where $5 million would be sufficient to get us beyond breakeven. This brought in a new set of prospective investors and required a lower investment from the lead investor as our existing investors were committed and on board.

Venture Capital 28

Venture Capital Silicon Valley San Jose Bootstrapping 28