article thumbnail

Hugh opportunities do NOT command amazing pre-money valuations.

Berkonomics

Yet, at the pre-revenue stage of development, angel investors price both companies at a pre-money valuation of $1.5 It is possible to grow a company to a valuation of $30 million on one or two angel rounds of investment. Email readers, continue here.] It doesn’t seem right, huh? But, it is… and here is why.

article thumbnail

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

Both Sides of the Table

So when you say $8–10m is your goal and you aren’t at all thinking about your valuation know that a VC hears “$24–40 million pre-money valuation expectations.” Note: If you enjoy or are learning from this series please subscribe by entering your email below?—?it

Burn Rate 247
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Want to Know How First Round Capital was Started?

Both Sides of the Table

Twitter wanted to raise money for this new venture at a pre-money valuation which was quite a bit higher than First Round’s $10 million limit. First Round Capital’s pre-money range is usually between $3-5 million. It is possible to submit a plan through email but it is not the best approach.

article thumbnail

The Power of Quora & Why Benchmark was Right to Pay Up

Both Sides of the Table

When somebody is new to Quora and is following you it encourages you to “give them topics&# to follow, which is clever because if they accept the topics they get more alerts, more emails – more bacn – and thus they come back to the site more frequently. Want to get more followers? No, really.

article thumbnail

How does someone get a meeting with angel investor David S. Rose?

Gust

I’m also allergic to funding “bridges to nowhere”, so I would like to hear your explanation of what you are going to do if no money appears to follow your seed round. BUT, if, after reviewing your Gust site, I invite you to come in for a pitch meeting, then you’ve done it!

article thumbnail

A VC’s take on the Season 5 premier of Sharktank

Lightspeed Venture Partners

Despite having over 500k downloads and making $450k in revenue over the last 21 months, he had only $185k left in the bank, which meant that he would be out of business in 90 days if he didn’t raise more money. pre money valuation and planned to use the money to market the app. pre money valuation).

article thumbnail

Don’t get hung up on early stage valuation.

Berkonomics

I can’t tell you how many times I’ve walked away from deals where the entrepreneur insists on a start-up pre-money valuation that is so high, no angel could expect to make a return upon the investment, even with a reasonable sales price for the company down the road. Here’s the “what.”. And here’s the “why.”.