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. So, even if it’s not perfect, get a viable product out into the market (and label it beta if you need to) prior to seeking PE funding.
Both Sides of the Table
JUNE 22, 2011
They have seen one side of a market where many of us have seen the ebb and flow multiple times. Still, market amnesia by ordinarily rational actors always surprises me. I believe a bubble occurs when a market is willing to pay greater than intrinsic value for an asset class. I spoke about a lot of things during the keynote.
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SoCal CTO
FEBRUARY 2, 2011
There's a lot out there around Customer Development - read Steve Blank : Entrepreneurship as a Science – The Business Model/Customer Development Stack - Steve Blank , October 25, 2010 Checklists for Chaos, The Path to Success - Steve Blank , October 28, 2010 and reading about Lean, MVPs, etc. Size of target market $100M is okay.
Lightspeed Venture Partners
OCTOBER 7, 2012
This isn’t a company yet, it’s an idea, and the founder could do a lot more on his own to validate product-market fit before raising capital. 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.
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. It’s like trying to sell a home still being built at next year’s dream market price. First priority is real revenue, customers and contracts.
Tim Keane
JANUARY 12, 2010
Bottom Up Market Sizing » January 12, 2010. Term-sheets and Valuations: Thinking about Negotiations. Good investors use the valuation discussions to gauge the business savvy of the management team and to understand their ability to appreciate and deal with economic market forces that set values.
Lightspeed Venture Partners
NOVEMBER 19, 2012
It isn’t the formulation that is the barrier to entry, but rather the marketing positioning of an energy drink designed by, and made for Marines Special Forces. Daymond had invested in a competitive business previously, so he bowed out. Interestingly, this new deal actually lowered the pre money valuation for the company.
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