Remove Finance Remove Post-Money Valuation Remove Startup
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Revisiting Paul Graham’s “High Resolution” Financing

Both Sides of the Table

When I first read Paul Graham’s blog post on “High Resolution&# Financing I read it as a treatise arguing that convertible notes are better than equity. As I’m generally a believer in ‘pricing rounds’ I initially didn’t agree with the premise of the post. Photo credit: D. rings true to me.

Finance 286
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Seed Stage Startups Are Now Graded on a Curve

View from Seed

The flood of seed-funded companies coupled with proliferation of seed funds willing to underwrite incremental capital into new and existing portfolio companies, has yielded a broad backlog set of “seed startups” with wild variations across the following three dimensions: 1. Effective) post-money valuation.

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NextView’s Greatest Hits

View from Seed

Free Template for Great Startup Pitch Decks, Direct from VCs. How to Sell Your Startup’s “Secret” Master Plan at the Seed Stage “Articulating and selling your long run vision is important, but trying to convince those that are deeply skeptical about it is simply a mutual waste of time.” Happy reading!

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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. That’s the deal you get when you’re raising in a good market for startup financing.

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Founder Ownership Math, Rainy Days, and Bigger Pies

This is going to be BIG.

You go back and forth on a price and you eventually settle on a post-money valuation cap of $6.5mm, meaning you have sold about 23% of your company. The first round is $3mm with a post-money valuation of $10mm, the Series A is $9mm with a post-money valuation of $30mm and so on.

Founder 159
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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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The Authoritative Guide to Prorata Rights

Both Sides of the Table

New investors sometimes want early investors to put in money to “prove” they have confidence in the new price. In the old days there weren’t many fights about whether angels would take their prorata rights in financing rounds. Fundraising / Negotiations Startup Lessons VC Industry' Thus begins the dance.