How much capital should you raise?

Version One Ventures

Many new founders think that because they’ve secured their seed round, it will be easy to find investors for the next round, and the next… However, a startup needs to demonstrate significant progress between funding rounds. Take the money, but do it wisely.

How Investors Think About Valuation of Pre-Revenue Startups


They might have some seed money and are thinking or raising a Series A based on success of an early release (MVP). He just post: Establishing the Pre-money Valuation of Pre-revenue Startups. A lot of my time is spent helping early-stage companies get to proof points so that they can raise capital. Because of this, I've always tried to stay up-to-speed on how early-stage investors look at valuation of companies. What are they really looking for?

Trending Sources

How to Decrease the Odds That Your Startup Fails

Both Sides of the Table

We also know that even though many of us who are experienced in startup successes & failures look at businesses and say, “That will never work” (as many people said about Uber) or “You can’t make any money in that business” (as many said about WhatsApp or Dropbox) and of course some entrepreneurs pull off extraordinary things we never thought possible. Our portfolio company Ring had a new “security doorbell” which is truly a new market.

3 Reasons To Seek Only What You Need During The Funding Process


The startup scene is not short on fun ideas like Yo, but without the ability to justify the amount of money you are seeking and how it will be used to grow your company most investors are going to decline to open their wallets. By Paul Jackson, founder of Worthworm.

LLC 38

So Just How Do You Start A Startup?


They originally set out to make money selling programming languages. Who understand that hard work is what’s going to secure their job and the company’s success. Only Money Can Make It Happen. Every startup needs money.

Why you shouldn’t keep your startup idea secret

Another benefit of talking freely, is that you may also find potential partners or future employees–other key components beyond investment money. link] Security. ???????? ????????? ???????. ??????? ???? ?????????? ? ???????????. ????? ????????????. link] What’s the right amount of seed money to raise? - chris dixons blog. Follow @cdixon. About me. contents. Twitter: @cdixon. My posterous blog. Hunch! Hunch API.

The Legal Side of Entrepreneurship


Startups need to understand how to manage the seed money they receive from investors and VCs. They also need to decide whether to structure terms as an equity deal or a convertible security deal. Convertible Securities. Debt or convertible securities (e.g.,

D-Wave's Dream Machine

Inc Startups

A universal quantum computer would in theory excel at factoring very large numbers, destroying most digital encryption schemes--hence the interest of the National Security Agency, as recently revealed by Edward Snowden.) Then D-Wave ran out of money.

VCs in seed clothing: Chris Dixon, Mark Suster, and Naval Ravikant interviewed

Venture Hacks

The topic was VC signaling in seed rounds — and how these signals help or hurt your ability to raise money in the next round. SlideShare: VC signaling in seed rounds. Chris Dixon: The problem with taking seed money from big VCs. VC signaling in seed rounds.

Land of the Freaked-Out

Inc Startups

Investors put less money into new ventures. What turns them on is opportunity--to be independent, to make money, to change the world, to create something new and exciting, to fulfill a dream, whatever.

How to Fund a Startup

A typical startup goes throughseveral rounds of funding, and at each round you want to take justenough money to reach the speed where you can shift into the nextgear. At Viaweb we got our first $10,000 ofseed money from our friend Julian, but he was sufficiently richthat its hard to say whether he should be classified as a friendor angel. The advantage of raising money from friends and family is thattheyre easy to find. But as well as money, theres power.

Should you raise on convertible notes or do an equity round?


A reader named Turner Dean recently asked me whether it’s better to raise seed money on convertible notes or straight-up equity. In general, I’m a big fan of convertible notes or convertible securities for seed stage founders.

No Capital? No Problem. What You Get For Free Is Priceless


Whatever the reason you can't secure capital for your start-up, or whatever your excuse for not moving forward with your idea, forget about the opportunity your non-existent investors are missing out on and think about the opportunity you're missing out on.

A Compilation of the Web's Best Advice for Entrepreneurs

Platforms and Networks

Rose is CEO of AngelSoft, a platform that provides web-based planning tools for angel investors and entrepreneurs (NEW 11/29) Marc Andreessen on how much money to raise -- and how much is too much (NEW 11/29) Atlas VC Fred Destin on what not to disclose to a VC when raising money (NEW 11/30) Equity simulator from OwnYourVenture that calculates impact on % ownership by round of $ raised, size of option pool, etc.

So What the Hell Happened? Part 1 of 5 An Internet Entrepreneur's Journey

But at the same time, I didn’t want to simply give up on making money online either. It would cost too much money, which I had none of at that point, and after Votesy didn’t take off, I was getting pretty tired of trying to make money from the Internet. Not being able to go out and do anything, having the horrible vertigo attacks, and suddenly going from making a lot of money online to absolutely nothing made me very depressed.

Startup/MicroISV Digest for 2/14/2011

47 Hats

Sprouter is an online community for entrepreneurs where you can get advice from more experienced startup founders one-to-one on securing angel and VC funding, pricing, positioning and all the other questions you face. The CatBoard - for Real cat lovers!

Dynamic strategy and the end of competitive advantage. Rita McGrath, Business of Software 2014

Business of Software Blog

There’s a lot of money there and the only thing that’s keeping them there is not that their customers are absolutely delighted because they don’t have customers they have hostages. billion dollars in interchange fees and that’s a lot of money! Is sustainable competitive advantage dead?

Birthing the Start Up Baby

Gregg Fraley, Author of Jack's Notebook

Working for someone else feels more secure, but it really isn’t, as nearly 8% of the USA population has learned. Money is a big topic and I’ll be doing more on it in the next couple chapters, but suffice to say, you need seed money to crank things up.

Entrepreneurs: The Funding Landscape Has Changed.


There is still abundant money available for early stage investment, but many of the rules have changed, as well as the processes for accessing these resources. Many of those investors, individual and institutional, are still licking those wounds; and as a result, investors today want to see a working business model, and customers that are willing to spend good money for your specific solution. Raising moneyGuest post by Sara Mackey.

Angels or Devils?

Launching Tech Ventures

By Neda Navab At lunch this month, Ray Rothrock of Venrock threw out some crazy statistics: in 2012, 30,000 ideas received money from angel investors, while only 1,500 received Series A funding. That is, 5% of seed-financed companies were able to secure Series A! Obviously there is a lot of (not so smart) angel money out there, but is the proliferation of money itself the real problem? They could also take seed money from VCs.

Tiered Valuation Caps

Austin Startup

Background Reading: The best seed round structure is the one that closes. This post assumes that, for a company’s early seed round, they’ve decided to use convertible notes or SAFEs; because the majority of startups do. The valuation cap has evolved into a proxy for valuation, even though by definition it is in fact a cap on valuation, and if things go south, the actual valuation at which the security converts goes downward with it.

What you should know about Angel Investors and Convertible Notes

Don Dodge on The Next Big Thing

The average deal size (seed stage) is about $250K. They invest in what they know, where they can apply their experience, and in deals where their money can have impact. Convertible Notes – Some Angel investors will use Convertible Notes to fund seed stage companies. The notes are usually secured by all assets and IP of the company. If you are only raising $100K of seed money it doesn’t make sense to spend $25K to $50K on lawyer fees for Series A docs.

The Great Abdication: Consumer Internet, Venture Capital, and Angels

Burnham's Beat

Too Many Deals Needing Too Little Money To be sure, there is plenty of investment capital available for Consumer Internet companies that have demonstrated significant market traction in terms of traffic or revenues, but there’s almost none available for what, up until recently, would be considered the sweet spot of true VCs: Seed or Series A startups. The reason is simple: the more funds under management, the more fees, the more “risk free” money for partners to split up.

Burnham's Beat: Edgeio and the ?Write Once, Publish Everywhere.

Burnham's Beat

I am not sure when they are officially launching but they have raised seed money from a bunch of top tier angels and from my tour of their new site, they appear to be well on their way to having the first vertical search engine that explicitly targets personal listings embedded inside individual web sites and blogs. Security. Security Analysis. The Great Reflation: How Investors Can Profit From the New World of Money. ">. Security. Burnhams Beat.


Which language should my startup use?

Despite what some vendors may say, all languages scale, and its hard to argue that one language is fundamentally less secure than another. These are usually insignificant amounts once a business is proven but can seriously eat into seed or first round capital. Seed money gets invested on something that shouldn’t be in use, rather than something provided by an off-the-shelf framework which won’t tie the business to a particular agency.