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Why Raising Too Much Money Can Harm Your Startup

Both Sides of the Table

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.

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On Bubbles … And Why We’ll Be Just Fine

Both Sides of the Table

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).

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8 Questions to Help Decide if You Should be Raising Money Now

Both Sides of the Table

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.

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Shark Tank Season 4 week 10 breakdown

Lightspeed Venture Partners

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.

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How to Evaluate an Offer from a Startup Incubator

The Startup Lawyer

The following are some issues to consider and actions to take before accepting an incubator’s offer: (1) Calculate Valuation and Determine Value. Pre-money valuations startups receive from incubators are typically low…really low. 6) Search For the Incubator’s PR and Marketing Efforts.

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Time is the Enemy of All Deals

Both Sides of the Table

million at a $15 million pre-money valuation. We had people hearing through the grapevine that we were about to raise money and new investors started calling us to get in on the deal. But I sometime see people get bogged down in PR releases, cancelation clauses, minimum guarantees, whatever. Yes, this was stupid.

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Twitter Link Roundup #176 – Small Business, Startups, Innovation, Social Media, Design, Marketing and More

crowdSPRING Blog

Q1 Venture Capital Spending & Number Of Deals Down, M&A Activity Drops 44 Percent And Pre-Money Valuations Plummet – [link]. Don’t let Silicon Valley fool you—millenials are the least entrepreneurial generation | Quartz – [link]. Downfalls of Distributed Startups – [link]. ” – [link].