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What Does the Post Crash VC Market Look Like?

Both Sides of the Table

When you look at how much median valuations were driven up in the past 5 years alone it’s bananas. Median valuations for early-stage valuations tripled from around $20m pre-money valuations to $60m with plenty of deals being prices above $100m. And we’re patient. What Does the Post Crash VC Market Look Like?

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Why Raising Too Much Money Can Harm Your Startup

Both Sides of the Table

conversation literally every week with startups. 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%. I have this “How much should I raise?”

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Why Startups Should Raise Money at the Top End of Normal

Both Sides of the Table

I wrote this because over the last decade I’ve seen a destructive cycle where otherwise interesting companies have been screwed by raising too much money at too high of prices and gotten caught in a trap when the markets correct and they got ahead of themselves. Again, prices are expressed as pre-money valuations.

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The Power of Quora & Why Benchmark was Right to Pay Up

Both Sides of the Table

What I notice is that people further the conversation, talk with each other, network, try to get noticed (linking to their websites, etc.). At an $86 million, pre-money valuation Benchmark sure did pay up for this investment. It’s true. I rarely only read the post. No, really.

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The Changing Structure of the VC Industry

Both Sides of the Table

pre-money valuation you certainly would want to exercise your right to continue investing if you had prorata rights. Just 3 years ago there was talk of institutional investors “not being able to write small enough checks.” ” Stated simply – if you seed funded Uber at $4.5m

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How Much Should You Raise in Your VC Round? And What is a VC Looking at in Your Model?

Both Sides of the Table

There’s a quick litmus-test conversation any early-stage VC will have with the founder and it’s one that you should be as prepared for as your elevator pitch. It goes something like this … VC: “How much money are you raising?” One entrepreneur refrain I sometimes hear is “We want to raise some extra money for M&A activities.”

Burn Rate 247
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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. Conversely I offered the same deal to another entrepreneur who decided to shop around longer. Yes, this was stupid.