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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

Angels typically invest in companies operating in industry sectors with which they are familiar. Working within a network of angel investors also expands the pool of expert resources and helps divide the work of screening companies and investment due diligence. The range of the data is from a low pre-money valuation of $0.8

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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. In the early 80’s he left academia to work on venture capital investing with Jim Simons, Renaissance Technologies. 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.

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Cliff Notes S-1: Kayak ? AGILEVC

Agile VC

AGILEVC My idle thoughts on tech startups. Now that Google’s acquisition of ITA is closed, following lenghty FTC review, it would appear Kayak is poised to proceed with their IPO in the coming months. =. 2010 Operating Income: $16 million. Pre-money valuation was approx. How To Think About The Future.

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How and Why To Be an Angel Investor

David Teten

These companies can range from tech startups to food trucks to retail stores. Villalobos & Payne: “Startup Pre-Money Valuation: The Keystone to Return on Investment” 117. Top performers conduct 40 hours or more of due diligence per investment and stick with companies as active advisors.[3].

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On Bubbles … And Why We’ll Be Just Fine

Both Sides of the Table

Responses ranged from, “hey, they’re in a HUGE market&# to “it is an amazing company and their technology rocks.&# It’s like people arguing that there’s a beautiful beach house in 2006 that represents great long-term value due to scarcity of similar property. But everything has intrinsic value.

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

Both Sides of the Table

High burn-rates fueled by over investment – One of the most damning things that happened to the start-up markets in 97-00 and 05-08 was the overfunding of technology companies. This came in part due to the huge influx of money into VC but also because hedge funds and private equity shops with no VC experience wanted part of the action.

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