Remove Conversion Remove Finance Remove Pre-Money Valuation Remove Reputation
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Why Raising Too Much Money Can Harm Your Startup

Both Sides of the Table

conversation literally every week with startups. So the temptation would be to ask for $5 million because that implies a $20 million pre-money valuation if you’re able to only give away 20% or a $15 million pre-money valuation of investors require 25%. I have this “How much should I raise?”

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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 “big boom” in startup financing started around March 2009?—?more Just 3 years ago there was talk of institutional investors “not being able to write small enough checks.” and hasn’t abated.

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The Truth About Convertible Debt at Startups and The Hidden Terms You Didn’t Understand

Both Sides of the Table

Was Paul Graham right in his “high resolution” financing post? Some thoughts on raising angel money. As in, “your money into my company will convert at a 15-20% discount to the next round of capital I raise with a maximum price of $8 million pre-money valuation (or whatever the cap was).”

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How Investors Can Bring More Than Just Money To The Table

YoungUpstarts

For startup founders and CEO’s it’s also just as common to see them place too much focus on the amount of money raised, and the pre-money valuation, rather than the value that each investor can bring to the table. Creating a reputation as an investor who truly backs their founders can often make you an investor of choice.

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Want to Raise Venture Capital More Easily? Clean Up Your Own Shite First

Both Sides of the Table

Reputation – Equally, the investor might not be worried about squeezing out your existing VC, per se, but doesn’t want to develop a reputation as a VC with an edge. I wouldn’t work in this business long if I had a reputation for screwing over other investors to get a deal. Reputation. So what happens?