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NextView’s Greatest Hits

View from Seed

Taking Corporate Venture Money: When it Makes Sense “PayPal took on these investors in small part because it gave us an imprimatur in the stodgy and regulated world of financial services. Hiring Your Team. ” (Lee Hower). ” (Rob Go). ” (Melody Koh). ” (David Beisel). ” (Melody Koh).

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Want to Know How VC’s Calculate Valuation Differently from Founders?

Both Sides of the Table

How VC’s Calculate Valuation : We walked through a standard deal where you raise $1 million at a $3 million pre-money valuation leading to a $4 million post money valuation. You’ll need to hire and retain talen to grow your company. The VC assumes you’ll have an option pool.

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What is it Like to Negotiate a VC Round?

Both Sides of the Table

In the old days VCs funded off of a “pre-moneyvaluation. If you add the pre-money valuation (let’s say $8 million) to the amount of money you’re raising (let’s say $2 million) you get the post-money valuation. How much is in the option pool?

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Why Startups Should Raise Money at the Top End of Normal

Both Sides of the Table

I’ve been preaching the “don’t get ahead of your inherent valuation&# message for nearly 10 years. million post-money valuation with no revenue. We had companies pitching us that had almost no revenue at all and they were raising $10-15 million in capital at a $40-50 million pre-money valuation.

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The Corrosive Downside of Acquihires

Both Sides of the Table

The Aqui-hire Business. If you give $2 million for 20% of a company ($8 million pre + $2 million investment = $10 million post-money valuation) that has no product and no customers and it turns around 3 months later and sells for $5 million it would hardly be fair for investor to get $1 million back (20% of the proceeds).

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Guy Kawasaki’s 10 Questions to Ask Before You Join a Startup

www.mint.com

What is the post-money valuation of your last round? Post-money valuation” is the value of the company after the last round of money was put in (again, lines of credit and promises don’t count). I posted it awhile back from my group on Linkedin, Ed Tech Start Ups and they loved it!

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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.