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When Should Startup Founders Discuss Valuation with Seed VCs?

View from Seed

Like any economic transaction, the pricing of a startup’s seed round ultimately depends on the equation of perceived supply (in this case, the quality of the team, product, and market opportunity) and the demand (how many competitive alternatives there are to any one given funder, including non-consumption). Above-Market Value.

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Both sides must be fair in a term sheet negotiation.

Berkonomics

As an example, twenty five years ago, most VCs used common share deal structures. It was not until the later 1980s that the preferred share structure became popular. During those times, VCs had lots of conferences where thought leaders gathered to discuss term sheets, deal structures and fund strategies.

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Signaling Pricing Expectations Early in Seed Investment Discussions

Genuine VC

Like any economic transaction, the pricing of a startup’s seed round ultimately depends on the equation of perceived supply (the quality of the team, product, & market) and demand (how many competitive alternatives there are to any one given funder, including non-consumption). But, also by definition, that just can’t be the case.

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Who Invests In Investors: Homebrew LP Shares VC Performance Goals, Importance of Diversity & What They Look For In New Funds

Hunter Walker

Oh and Anne is DEFINITELY still interested in venture as part of Hamilton’s investment strategy. We triangulate with investors, entrepreneurs and large company operators to assess probability of success and ability to attract in-demand entrepreneurs. If you have the opportunity to work with her, I highly recommend it.

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The Pre-Seed FAQ

K9 Ventures

So, I took it upon myself as a challenge to put together the definitive “ Pre-Seed FAQ.” In order for a company to attract a full Seed round ($2M – $3M), that company needs to show an almost completed product, an advanced prototype, or some kind of traction/demand metrics. Q: How are most Pre-Seed deals structured?

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Cracking The Code: The Bessemer 10 laws of SaaS - Fall 2008.

Cracking the Code

Only after reaching $1M in CMRR should you consider hiring European sales and services execs behind customer demand. Be prepared to cross the desert - SaaS requires R&D and sales expense up front for a multi-year stream of revenue, so it demands enough investment capital to fund 4+ years of runway. Bessemer SaaS Law #6.

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Why Leave A Six Figure Corporate Job For Internet Entrepreneurship?

Entrepreneurs-Journey.com by Yaro Starak

I was trading real heavy hours for heavy dollars, and led a very mobile, demanding and by choice, a pressure packed lifestyle. I travelled all over the world wherever business deals were happening, gained tremendous experience and exposure to the Corporate landscape, and learned invaluable life lessons in my career. I didn’t need any.