Remove Metrics Remove Post-Money Valuation Remove Startup
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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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Valuation Methods 101

Gust

This is the first of a six part series on different methods used by angel investors to arrive at pre-money startup valuations. Return on Investment (ROI) = Terminal (or Harvest) Value ÷ Post-money Valuation. (in Then: Post-money Valuation = Terminal Value ÷ Anticipated ROI.

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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.” ” (Rob Go).

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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. While there is no “one size fits all” I used to give the advice that you should plan about 4.5

Burn Rate 150
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90 Things I've Learned From Founding 4 Technology Companies

betashop.com

It has been awesome, flattering, and humbling to see that post went viral and has been seen by so many thousands of people — mainly aspiring entrepreneurs — and has been translated into many languages. There’s no time to dicker around at a startup. Startups are hard work. 10M post-money valuation = $100M target.

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Bad Notes on Venture Capital

Both Sides of the Table

There were no metrics. Him: On metrics. If we priced it based on any metrics your company would likely be worth less than 7 figures at your A round. How do you think they’ll feel if your next round is at a $50 million post money valuation and their hard-earned $25,000 is worth 0.05% of your company?

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Why are the majority of angel investors focused on opportunities with large TAM?

Gust

The problem is that since the average holding period for an angel investment is around nine years , that means by the time you’ve toted up the returns for 90% of your investments, and subtracted out the time value of money, the one very successful investment in the entire portfolio must return at least *30* times the original investment!