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Why Raising Too Much Money Can Harm Your Startup

Both Sides of the Table

So the temptation would be to ask for $5 million because that implies a $20 million pre-money valuation if you’re able to only give away 20% or a $15 million pre-money valuation of investors require 25%. A $15–20 million valuation sounds better than an $8 million valuation, doesn’t it?

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Valuations 101: Scorecard Valuation Methodology

Gust

In 2011, the valuation of pre-revenue, start-up companies is typically in the range of $1.5–$2.5 million and is established by negotiations between the entrepreneur and the angel investors. Angels typically invest in companies operating in industry sectors with which they are familiar. million for pre-revenue companies.

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The Changing Venture Landscape

Both Sides of the Table

We operate at scale and speed unprecedented in human history.” * I first wrote about the changes to the Venture Capital ecosystem 10 years ago and this still serves as a good primer of how we arrived at 2011, a decade on from the Web 1.0 And the truth is that several entrepreneurs prefer it this way. dot-com bonanza.

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Cliff Notes S-1: Kayak ? AGILEVC

Agile VC

2010 Operating Income: $16 million. Pre-money valuation was initially set higher but was adjusted to match the Ser B valuation. Pre-money valuation was approx. Pre-money valuation was approx. Pre-money valuation was at least $250M (2). Author howerl.

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Want to Know How First Round Capital was Started?

Both Sides of the Table

Howard Morgan earned a PhD in Operations Research/Computer Science in 1968. The Exchange Fund – This allows the entrepreneurs to diversify their founders stock into other portfolio companies stock. First Round Capital’s pre-money range is usually between $3-5 million. They have since made a few exceptions but not many.

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The Great VC Ice Age is Thawing (for now) – Part 1 of 3

Both Sides of the Table

But any entrepreneurs raising capital should keep in mind that this opening of the markets could possibly be temporary. They should heed the age old advice that raising slightly more money while you can is always better than trying to optimize future valuations. I put my money on the latter.

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On Bubbles … And Why We’ll Be Just Fine

Both Sides of the Table

This was an audience of mostly first-time entrepreneurs. It is great for entrepreneurs and great for VCs. So here is what I have been telling entrepreneurs privately for the past 6 months. What a bubble means for each entrepreneur. Still, market amnesia by ordinarily rational actors always surprises me. I believe that.