Remove Conversion Remove Post-Money Valuation Remove Startup
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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

I was reading Danielle Morrill’s blog post today on whether one’s “ Startup Burn Rate is Normal. I love how transparently Danielle lives her startup (& encourages other to join in) because it provides much needed transparency to other startups. ” I highly recommend reading it.

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Why Startups Should Raise Money at the Top End of Normal

Both Sides of the Table

2 preamble issues having read the comments on TC today: 1: I know that the prices of startup companies is much great in Silicon Valley than in smaller towns / less tech focused areas in the US and the US prices higher than many foreign markets. I thought I’d post on one of the topics before hand. They are pretty illiquid.

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So What is The Right Level of Burn Rate for a Startup These Days?

Both Sides of the Table

There is much talk these days that startup valuations have decreased and may continue to do so and that the amount of time it takes to fund raise may take longer. I’m surprised how few entrepreneurs have this open conversation with their investors. In fact, most entrepreneurs I know don’t ask – why is that? .”).

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Unintended Consequences: When SAFE and Convertible Notes Go Awry

Pascal's View

This is a fundamental issue that does, indeed, boil down to understanding the post-money valuation of a company. At its core, this issue points to the lack of understanding about the importance of post-money valuation by both entrepreneurs and investors. It will be worth the time and effort. Sound simple?

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How to Talk About Valuation When a VC Asks

Both Sides of the Table

I thought I’d write a post about how to talk about valuation at a startup and give you some sense of what might be on the mind of the person considering funding you. Of course, unlike cars there is no direct comparison across each startup so these are just some general guidelines to try and even the information field.

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What is it Like to Negotiate a VC Round?

Both Sides of the Table

Over the years I’ve written extensively about the downsides of convertible notes for startups such as here , here and here. It’s worth reading his post to understand the problem. In the old days VCs funded off of a “pre-moneyvaluation. I can boil it down to how this tension plays out.

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A Primer on Angel Investment ‘Simple Term Sheets’

Startup Professionals Musings

The price is the percent of ownership given to the investor, calculated as “investment/post-money valuation.” The pre-money valuation is company value today, while the post-money valuation is the pre-money valuation plus the investment amount. Seat on the board. Marty Zwilling.