Cost Early Stage Pre-Money Valuation Revenue 
SoCal CTO
SEPTEMBER 27, 2011
I was asked by a reader how much equity he should give out to early employees and to service providers in a very early stage startup. Founders vs. Early Employees To help with this discussion, let me start with a definition of "early employee." If the company's valuation is $2 million, $90k is 4.5%.
VC Cafe
SEPTEMBER 26, 2022
The press took notice, especially since just a few months later startups were laying off employees en-masse to cut costs. Sustainable growth: Prioritise sales efficiency over growth at all costs. ValuatIon should be a function of value, not ego. In times of uncertainty, be like Scrooge McDuck! Our goals, their goals.
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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. That is to say, they’d want to be able to control costs and revenues at a high level. His first capital raise was a $2.75
Both Sides of the Table
JULY 23, 2014
Lower costs to start a business (95% reduction), many more companies created & funded by angels / seed. pre-money valuation you certainly would want to exercise your right to continue investing if you had prorata rights. Unprecedented revenue growth + companies staying private longer =.
ReadWriteStart
OCTOBER 7, 2010
Bottom line, early stage equity is very, very expensive. So at any point, if you are trying to raise money, and you are hearing from investors that you are too early and have too little validation, it may be a good thing. Then Liana Thompson pitched Trendy Loot , a very early stage deal site for low-end jewelry.
Startup Professionals Musings
NOVEMBER 26, 2012
How much is NewCo worth to investors at this point (pre-money valuation)? What percentage of NewCo does the investor own after the $1M infusion (post-money ownership percentage)? On the other hand, if the pre-money valuation is $4M, the founders ownership remains at a healthy 80% level.
Both Sides of the Table
FEBRUARY 15, 2016
The earlier the round, the less capital you need and the more reasonable your valuation the less time that is needed generally to raise capital. In other words, raising $2 million at a $6 million pre-money valuation has always been easier & quicker than raising $20 million at any valuation.
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