When Should Startup Founders Discuss Valuation with Seed VCs?

View from Seed

Sharing these pricing expectations early with potential lead investors fundamentally qualifies your conversations, but it also runs the risk of prematurely losing a potential financing partner, or else it can reduce options to maximize your fundraise outcome.

Signaling Pricing Expectations Early in Seed Investment Discussions

Genuine VC

As more transparency to seed-round funding transaction details have emerged, especially with the advent of Angelist and accelerator programs (which both educate and even sometimes set terms & structure for graduating companies), I’ve noticed an increasing number of entrepreneurs signal pricing expectations much earlier in the seed fundraising process. Setting a structure and price in advance can also expedite the negotiation process, especially when it’s with multiple parties.

Trending Sources

From demo day to dollars!

StartupCFO

Don’t get into custom due diligence sessions with each potential investor. Build a pipeline : Create a simple spreadsheet to track your leads, level of interest, potential subscription amount and next steps. Are any of your mentors potential investors?

Startup Blog: 7 Questions You May Get from Potential Investors

Taffy Williams

Wednesday, April 20, 2011 7 Questions You May Get from Potential Investors If you have completed the steps outlined thus far, you have the proper materials to start your search for funding and partners. Some investors may insist that you co-invest in a round.

Knowledge Is Power: Convertible Note Financing Terms, Part V

Gust

As we conclude our convertible note financing series, there are assorted terms commonly seen in term sheets and deal documents that are worth touching on briefly. Investor Questionnaire. This is the norm for West Coast deals, but it’s often the case in dealing with East Coast investors (more commonly for VC financing rounds rather than angel seed rounds) that the lead investor wants its lawyers to draft the documents.