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How Early-Stage Startups Can Utilize the SVB Collapse as a Wake-Up Call

The Startup Magazine

As an early-stage company that just closed our seed round at $8.1 So what does an early-stage company do to avoid the doom and gloom plaguing the world of startups? As a founder, ask yourself – does your business actually warrant VC funding? That includes us. We’re hitting record revenue months, weeks, and margins.

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Why Raising Too Much Money Can Harm Your Startup

Both Sides of the Table

You will build out features or expend to platforms — often before you have enough market feedback to warrant it. How much you raise determines valuation I know it sounds crazy but at the earliest stages of a company your valuation often is determined by how much money you raise.

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Should Your Startup Give Performance-Based Warrants?

Both Sides of the Table

the economic benefits to BigCo never warrant all of the time and effort they put into getting a stake in your company and trying to make that stake worth money. So Plan B for many BigCo’s is to take “performance-based warrants.&# The following is a guide to what these are, whether to offer them and how to structure them.

Warrant 298
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How Much Should You Raise in Your VC Round? And What is a VC Looking at in Your Model?

Both Sides of the Table

There’s a quick litmus-test conversation any early-stage VC will have with the founder and it’s one that you should be as prepared for as your elevator pitch. He or she wants to know how long the money you will raise will last and whether this is long enough to warrant taking a risk on funding you. Founder: “$250k / month.”

Burn Rate 247
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Get 10 years of experience in 3 years running the most active venture fund in Texas

Austin Startup

Capital Factory has been the most active early stage tech investor in Texas since 2013. Do you have an understanding of venture capital terminology and common structures such as convertible notes, SAFEs, stock options, warrants, and early stage equity transactions? We did 70 transactions in 2018 alone!

Texas 56
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Revisiting Paul Graham’s “High Resolution” Financing

Both Sides of the Table

I talked about this in my social proof post where I gave some suggestions about how to get the early guys off of the fence. Most early-stage entrepreneurs who have worked with me (either as an angel or as a seed VC) know that I don’t rely at all on the social proof of other investors. When I’m in, I’m in.

Finance 286
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Beware of Premature Merge Elation

Both Sides of the Table

The only thing worse than your early-stage company buying another early stage company is you trying to pull off a merger of equals. Want to sell early? If they’re early stage like you, they’re likely just dogs. Don’t trade your cat for somebody else’s dog.

Merger 276