Remove Conversion Remove Demand Remove Marketing Remove Pre-Money Valuation
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How Much Should You Raise in Your VC Round? And What is a VC Looking at in Your Model?

Both Sides of the Table

There’s a quick litmus-test conversation any early-stage VC will have with the founder and it’s one that you should be as prepared for as your elevator pitch. It goes something like this … VC: “How much money are you raising?” One entrepreneur refrain I sometimes hear is “We want to raise some extra money for M&A activities.”

Burn Rate 247
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Why Startups Should Raise Money at the Top End of Normal

Both Sides of the Table

2 preamble issues having read the comments on TC today: 1: I know that the prices of startup companies is much great in Silicon Valley than in smaller towns / less tech focused areas in the US and the US prices higher than many foreign markets. I can’t control the market. Private markets for stocks are the opposite.

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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.

Valuation 336
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Founders Should Set Aside More Equity for Their Team & “Split the Pain” With Investors

Hunter Walker

Satya and I rarely see less than a 10% pool created at seed and Series A, but are increasingly engaging with founders about 12-15% pools, especially if you’re going to be hiring in-demand engineers (computer vision, AI) and/or (more typically post Series A), building out a senior executive team.

Equity 94
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8 Questions to Help Decide if You Should be Raising Money Now

Both Sides of the Table

This conversation seems to come up very frequently these days both with portfolio companies and with entrepreneurs just looking for mentorship. For many businesses you should keep your costs low & your capital raises low until you discover whether you are really on to a big idea where there is market demand. 25% dilution).

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How to Talk About Valuation When a VC Asks

Both Sides of the Table

One of the hardest things about the fund-raising process for entrepreneurs is that you’re trying to raise money from people who have “asymmetric information.” VC firms see thousands of deals and have a refined sense of how the market is valuing deals because they get price signals across all of these deals. Call this “price signaling.”

Valuation 324
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Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

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. times at six years.