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The Pre-Seed FAQ

K9 Ventures

I’ve been an avid reader of Dan’s Term Sheet while he was at Fortune , and now Pro Rata at Axios. Seed is the new Series A. (~$2M used get for building product, establishing product-market fit and early revenue). 6M-$15M used to scale customer acquisition and revenue). Q: How are most Pre-Seed deals structured?

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How to value your company for sale (Part 2)

A Smart Bear: Startups and Marketing for Geeks

ME: Of course getting tied up with that might distract you from other growth opportunities, and sometimes buyers don’t like that you’re dependent on another company for revenue. It’s not the number, it’s the whole term sheet. But trying to work out the risk/reward of unknowable possibilities is worse.

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Piercing the Corporate Veil of Sweat Equity

grasshopperherder.com

As such, you should make sure to think of the proposals as an investor and get a reasonable term sheet. I think it’s difficult, if not impossible, to value a pre-revenue company with any reasonable accuracy. The company with all the revenue is Company C. Instead of putting in money, you’re putting in time.