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Valuations 101: The Dave Berkus Method

Gust

We recently started a series of posts on establishing the pre-money valuation of pre-revenue startup companies for purposes of investment by seed and startup investors. He has invested in more than 70 startup ventures. Add to Pre-money Valuation. Here is his latest version.

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

Both Sides of the Table

I’m a very big believer in the “Lean Startup&# principles as espoused by Steve Blank and Eric Ries. In the seed phase startups are typically raising between $500k-$1m in today’s market. You’re offered a $9 million pre-money to raise $3 million (e.g. So here’s my framework. 25% dilution).

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A VC’s take on the Season 5 premier of Sharktank

Lightspeed Venture Partners

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. pre money valuation and planned to use the money to market the app. pre money valuation).

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Shark Tank Season 4 Week 6 breakdown

Lightspeed Venture Partners

This implies a pre money valuation of $1.045M. See my breakdown of week 2 for more on how to calculate pre money valuation.). The pre money valuations on the two deals were close enough to be a wash, but the ability to accelerate the business at twice the speed would have been a real differentiator.

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Vulture Capital: Why Early Stage VC Could Kill Your Startup

The Startup Magazine

Most startups view venture capital funding as a blessing from above — eager to take it as soon as they can get it. Tempted by large sums of money and the perceived validation that comes along with being funded, founders turn to venture capitalists to accelerate their company’s growth. This is often the case when it comes to VC funding.

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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. ” The pioneering fund of funds realize that their source of differentiation is much more about the latter than the former. The “big boom” in startup financing started around March 2009?—?more

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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. This is part of my ongoing series with Startup Advice (although this also applies tightly with Raising Venture Capital ).