Both Sides of the Table

JUNE 30, 2016

It is a truism that with more capital you will hire people more quickly and spend more liberally whether it’s on external contractors, PR firms, attending events, doing legal work (trademarks, patents) or whatever. A $15–20 million valuation sounds better than an $8 million valuation, doesn’t it? million or $4 million.

Pre-Money Valuation 292

Pre-Money Valuation Valuation Early Stage Startup 292

Both Sides of the Table

JUNE 22, 2011

In addition to FOMO it is partly driven by massive increase in valuations for earlier-stage companies who raised money at bit seed prices but who still have product risk. million pre-money valuation is now raising $1 million at a $12 million valuation the next investor has nowhere to go but up (or sit out the investment).

Saudi Arabia 309

Saudi Arabia Valuation IPO Technical Review 309

Both Sides of the Table

FEBRUARY 17, 2011

You’re offered a $9 million pre-money to raise $3 million (e.g. 5 million raised at a $9 million pre-money valuation or 35.7% dilution), I would personally probably avoid the extra money because as an entrepreneur the dilution would put me out of my confort zone. They get the PR bump.

Pre-Money Valuation 303

Pre-Money Valuation Dilution Valuation PR 303

Lightspeed Venture Partners

NOVEMBER 19, 2012

The company launched six months ago and so far has grown to 110 subscribers, with all customer acquisition coming from PR and referrals. Interestingly, this new deal actually lowered the pre money valuation for the company. 75,000 for 10% implies a $675,000 pre money valuation.

Pre-Money Valuation 158

Pre-Money Valuation Alabama Valuation Churn Rate 158

crowdSPRING Blog

APRIL 26, 2013

5 Hiring Mistakes That Can Crush Your Company’s Culture – [link]. Q1 Venture Capital Spending & Number Of Deals Down, M&A Activity Drops 44 Percent And Pre-Money Valuations Plummet – [link]. Activity Based Pricing: When Is It The Right Choice for Your Startup? – [link].

Social Media 90

Social Media Small Business Design Media 90

www.paulgraham.com

OCTOBER 23, 2010

One of the best tricks I learned during our startup was a rule for deciding who to hire. And when businesspeople try to hire hackers, they cant tell which ones are good.Even other hackers have a hard time doing that. When we got real funding nearthe end of 1996, we hired a great CFO, who fixed everything retroactively.

Startup 105

Startup Cofounder Software Stock 105

This is going to be BIG.

SEPTEMBER 7, 2012

I think I'm terrific at helping early stage teams by rolling up my sleeves and doing what's necessary--getting them hires, PR, product strategy help to find that market fit. If you're investing at pre-money valuations in the low to mid single digits, then how much worse can the next round even get? Down from what?

Later Stage 99

Later Stage Down Round Pre-Money Valuation Early Stage 99