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pre-moneyvaluation you certainly would want to exercise your right to continue investing if you had prorata rights. ” The pioneering fund of funds realize that their source of differentiation is much more about the latter than the former. Unprecedented revenue growth + companies staying private longer =.
million at a $15 million pre-moneyvaluation. 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. If it’s a biz deal you might care about IP protection, revenue share, investment commitments to joint marketing – whatever.
We recently started a series of posts on establishing the pre-moneyvaluation of pre-revenue startup companies for purposes of investment by seed and startup investors. Dave’s valuation model first appeared in a book published by Harvard’s Howard Stevenson in the middle nineties. Characteristic.
Despite having over 500k downloads and making $450k in revenue over the last 21 months, he had only $185k left in the bank, which meant that he would be out of business in 90 days if he didn’t raise more money. premoneyvaluation and planned to use the money to market the app. premoneyvaluation).
The company has gotten off to a fast start, $150k in revenue in the first two months, with all the marketing coming from social media. This implies a premoneyvaluation of $1.045M. See my breakdown of week 2 for more on how to calculate premoneyvaluation.). In 2010 they did $10k in profits.
Venture funding isn’t real validation – market traction and continued profitability and revenues are. In an industry known for its high turnover, a strong and differentiated company culture can help attract and retain talent. This approach is not possible when venture funded. . Focus on Product Development First.
The cover note should include: name, website, location, revenues (if any), detailed financing history (if any), and precise terms on which you are seeking to raise capital. If you are testing the market to see what terms you can get, just say, “We are targeting to raise $X at pre-moneyvaluation of $Y.”
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