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Why Startups Should Raise Money at the Top End of Normal

Both Sides of the Table

I wrote this because over the last decade I’ve seen a destructive cycle where otherwise interesting companies have been screwed by raising too much money at too high of prices and gotten caught in a trap when the markets correct and they got ahead of themselves. Again, prices are expressed as pre-money valuations.

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The Changing Venture Landscape

Both Sides of the Table

By definition?—?I’m I’m over-paying for every check I write into the VC ecosystem and valuations are being pushed up to absurd levels and many of these valuations and companies won’t hold in the long term. The market definition has changed but what we do mostly hasn’t. Are we in a bubble?”

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The Changing Structure of the VC Industry

Both Sides of the Table

pre-money valuation you certainly would want to exercise your right to continue investing if you had prorata rights. The result of these new market trends of Prorata Takers, Corporate Investors & Public Market Entrant has led to a sharp spike in the valuations of late-stage financings.

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The Power of Quora & Why Benchmark was Right to Pay Up

Both Sides of the Table

What I notice is that people further the conversation, talk with each other, network, try to get noticed (linking to their websites, etc.). You definitely notice the people who are engaged with your content and you can’t help but click on the link of their name to see just who they are. It’s true. Engagement. No, really.

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3 Economic Rules Every Crypto Start Up Must Obey

Austin Startup

Our pre-money valuation for the seed round is 2 trillion dollars.” This isn’t cheap to do, but going to prison is definitely more expensive. We see a lot of crypto start-up ideas that go something like this: “We’d like to put bananas on the block chain and trade them with utility tokens. You bet it is!

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When Should Startup Founders Discuss Valuation with Seed VCs?

View from Seed

Using NextView as an example, since we both seek to lead the seed round and only lead during this round, I’ve seen this trend manifest in one of two ways: In a priced round, the entrepreneur will often share their valuation ask (or a stated floor) for the pre-money valuation of their company much sooner in the process.

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Signaling Pricing Expectations Early in Seed Investment Discussions

Genuine VC

By communicating pricing expectations with potential lead investors, I mean sharing either an “ask” or even stated floor for the pre-money valuation of the company (with a priced preferred round) or explicitly stating a valuation cap (for convertible note round). But, also by definition, that just can’t be the case.

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