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Which Fundraising Round Should You Skip?

View from Seed

The reality is that if a founder raised every one of these rounds, and lead investors always got their “target” ownership, the level of dilution would be ridiculous. No good investor would want the founder/CEO of a company to have insufficient ownership by the series A, and every founder I know is sensitive to taking too much dilution.

Dilution 149
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The Entrepreneur's Guide to Customer Development

Startup Lessons Learned

Brant and Patrick undertook a difficult challenge: to provide a generally accessible introduction to Customer Development, without diluting its impact or dumbing-down its principles. On the minus side, that has made it a wee bit hard to understand. I think theyve succeeded. The Entrepreneur’s Guide is an easy read.

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Marching through quicksand

Startup Lessons Learned

Despite all the energy invested in talking to authors about the size of their platform, very few gatekeepers have a rigorous set of metrics for measuring it. And as everyone’s attention starts to focus on those same indicators, their value is being diluted. My blog has over 14000 subscribers, for example. Is that a lot?

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Why Continuous Deployment?

Startup Lessons Learned

Of all the tactics I have advocated as part of the lean startup , none has provoked as many extreme reactions as continuous deployment , a process that allows companies to release software in minutes instead of days, weeks, or months. The Lean Startup Intensive is tomorrow at Web 2.0. Expo SF (May. for Harvard Business Revie.

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A real Customer Advisory Board

Startup Lessons Learned

Every time you listen to customers, you fear diluting your vision. Every time you listen to customers, you fear diluting your vision. The Lean Startup Intensive is tomorrow at Web 2.0. Amazing lean startup resources Is Entrepreneurship a Management Science? That’s natural. That’s natural. Expo SF (May.

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The Changing Venture Landscape

Both Sides of the Table

A-Rounds used to be $3–7 million with the best companies able to skip this smaller amount and raise $10 million on a $40 million pre-money valuation (20% dilution). So in a way it’s self selecting. These days $10 million is quaint for the best A-Rounds and many are raising $20 million at $60–80 million pre-money valuations (or greater).

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How Much Funding Should You Raise?

Up and Running

Any investor will put their valuation on your business based on a number of factors, including looking at important metrics for your business, patents, or assets. Operating lean should be the mantra of all businesses. Just as raising too little is risky, raising too much funding is fraught with its own dangers. Assessing need.