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Why Startups Should Raise Money at the Top End of Normal

Both Sides of the Table

But to help with the explanation I’d like to put down some markers of typical Internet pre-money valuations done in major US markets (San Fran, NY, LA, etc.) while acknowledging that San Fran deals are often higher valuations due to increased competition amongst investors. And of course there are always outliers.

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The Changing Venture Landscape

Both Sides of the Table

By definition?—?I’m I’m over-paying for every check I write into the VC ecosystem and valuations are being pushed up to absurd levels and many of these valuations and companies won’t hold in the long term. The market definition has changed but what we do mostly hasn’t. Are we in a bubble?”

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Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

An average of these ranges results in a pre-money valuation of about $4MM.   If similarly situated companies are seeing $3.5MM pre-money valuations, this might become the target valuation.   Pre-bubble Siliicon Valley deals were popularly valued at multiples of revenue.

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Don’t Pitch A Venture Capitalist Without This Checklist

David Teten

I’ve listed below the points I recommend you cover when pitching your business to early-stage investors, including but definitely not limited to ff Venture Capital. If you are testing the market to see what terms you can get, just say, “We are targeting to raise $X at pre-money valuation of $Y.”

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Why the New Seed Might Be a Bad Seed

This is going to be BIG.

So whereas seed rounds five years ago may have been less than a million dollars on a pre-money valuation of three or four million, today''s seed is up and over a million and usually closer to two million, with post money valuations nearing $10 million. If you''re worried about the runway, try doing less things.

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Pre-seed is the new seed

Hippoland

Then I asked him about his metrics, which are good, but they are were not at series A level. I have a few founders I’ve backed who are just on the border of post-seed / series A metrics and are able to get term sheets from both series A and post-seed investors. And there’s a huge difference in valuation.

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Pre-seed is the new seed

Hippoland

Then I asked him about his metrics, which are good, but they are were not at series A level. I have a few founders I’ve backed who are just on the border of post-seed / series A metrics and are able to get term sheets from both series A and post-seed investors. And there’s a huge difference in valuation.