Remove Conversion Remove Demand Remove Down Round Remove Finance
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Why Startups Should Raise Money at the Top End of Normal

Both Sides of the Table

I have conversations with entrepreneurs and other VCs on a daily basis about fund raising, the prices of deals, how much companies should raise, etc. That’s the deal you get when you’re raising in a good market for startup financing. I thought I’d post on one of the topics before hand. That’s fine.

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Startup Valuations – Again….

ithacaVC

Here is Walla’s post: I can’t tell you how many times I’ve had this conversation. A founder is about to raise their first round and asking me how to value their company. [1]. Raising momentum / high demand. If your company is in high demand, it drives the potential valuation up. Don’t risk a down round.

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Why is there such a large founder to early employee equity drop-off? - Quora

www.quora.com

1 vote by Elad Gil It's a risk/reward, supply/demand power equilibrium. Even if your company succeeds, there is absolutely no guarantee your equity will not be wiped out in a down round. Some finance guy said "12k a month minimum" and someone replied "I must be living in abject poverty" and its true.

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