Startup Professionals Musings

JANUARY 27, 2012

Based on my experience, and the book “ Attracting Capital from Angels ” by Brian Hill and Dee Powers, here are some key clauses that any investors expect on the first term sheet for the investment you need: Set the price. The price is the percent of ownership given to the investor, calculated as “investment/post-money valuation.”

Term Sheet 223

Term Sheet Pre-Money Valuation Due Diligence Angel Investor 223

K9 Ventures

JUNE 5, 2015

Low supply of companies with traction drove the valuations and deal sizes up. The risk here is what I refer to as the curse of over-capitalization. Seed stage was super tough. Seed is the New A. The seed round has ballooned. Valuations are rising to match. more traction means it takes longer. The Epilogue.

Seed Stage 48

Seed Stage Venture Capital Early Stage Valuation 48

Startup Professionals Musings

SEPTEMBER 14, 2010

According to Attracting Capital from Angels by Brian Hill and Dee Powers, here are some key clauses that angel investors expect on the first term sheet for the investment you need: Set the price. The price is the percent of ownership given to the investor, calculated as “investment/post-money valuation.” Seat on the board.

Term Sheet 227

Term Sheet Pre-Money Valuation Due Diligence Post-Money Valuation 227

Gust

SEPTEMBER 27, 2014

While VCs are the toughest nut to crack, there are many other (often better) sources of seed capital that may be available to you. This will almost always be the best approach to an investor. Gust is used by over 1,000 angel investment groups, accelerators, business plan competitions and support programs to manage their applications.

Angel Groups 159

Angel Groups Elevator Pitch Software Review Deal Flow 159

Gust

SEPTEMBER 29, 2011

The second reason, perhaps nearer to both entrepreneurs’ and investors’ hearts, is the ability to punt on valuation at a stage in which it is hardest to determine using any objective criteria. If you have any specific questions, please leave them in comments!

Finance 178

Finance Term Sheet Preferred Stock Bridge Financing 178

Gust

OCTOBER 17, 2011

Based on my experience, and the book “ Attracting Capital from Angels ” by Brian Hill and Dee Powers, here are some key clauses that any investors expect on the first term sheet for the investment you need: Set the price. The price is the percent of ownership given to the investor, calculated as “investment/post-money valuation.”

Term Sheet 158

Term Sheet Pre-Money Valuation Due Diligence Angel Investor 158

Feld Thoughts

SEPTEMBER 10, 2015

There is also a huge amount of seed capital available from seed funds. if the valuation goes above $3m pre it’s too late for me). And the convertible note phenomenon hasn’t helped as many seed deals just keep raising small amounts of convertible debt. The supply / demand imbalance is way off.

Angel Investor 70

Angel Investor Seed Capital Valuation Demand 70

The Startup Magazine

MAY 7, 2024

Lastly, note that using free crowdfunding sites provides an excellent cost-effective solution compared to seed capital or personal loans with high-interest rates. The social proof and validation received from having numerous tangible backers can also be priceless.

Campaign 126

Campaign Seed Capital Social Network Global 126

Steve Blank

APRIL 12, 2013

The first wave of startups began when R&D centers and universities began to provide the technology and seed capital for new startups that were spin-outs or spin-offs. Over 100 startups were listed on ChiNext the first year of its launch at sky-high valuations (average of 66 times earnings.)

Venture Capital 279

Venture Capital China Offshore SBIR 279

Feld Thoughts

JULY 14, 2015

A company raises $1m of seed money from angels in a convertible note with a $6m cap. Assuming equity is raised at or above that cap, the total dilution, before the new money, is 16.6% (equivalent to an equity financing of $1m at a $6m post money valuation. The company spends the $1m building and launching their first product.

Recapitalization 70

Recapitalization Pre-Money Valuation Post-Money Valuation Angel Investor 70

The Startup Lawyer

OCTOBER 9, 2010

Pretty expensive seed capital. Good luck trying to convince even the most nascent of startups to take your investment at around a $100k post-money valuation. Tags: Startup Issues dallas incubator mobile applications seed capital. a) That’s $20,000 per startup for a 15%-20% equity stake.

Dallas 91

Dallas Seed Capital Incubator Post-Money Valuation 91

Steve Blank

APRIL 12, 2013

The first wave of startups began when R&D centers and universities began to provide the technology and seed capital for new startups that were spin-outs or spin-offs. Over 100 startups were listed on ChiNext the first year of its launch at sky-high valuations (average of 66 times earnings.)

Venture Capital 171

Venture Capital China Offshore SBIR 171

ReadWriteStart

APRIL 26, 2012

Angels have significantly increased their investment activity, and are committing more dollars resulting from higher valuations," says Jeffrey Sohl, director of the UNH Center for Venture Research at the Whittemore School of Business and Economics. “It If your business is beyond the seed capital stage, there’s still good news for you.

New Hampshire 120

New Hampshire Early Stage Seed Capital Angel Investor 120

Feld Thoughts

JULY 29, 2011

Finance Friday’s gets off the ground with today’s post by introducing you to an imaginary startup, the entrepreneurs that we’ll being following throughout the series, and their first challenges: splitting up the founders’ equity and addressing the case where one of the founders provides the initial seed capital for the business.

Equity 137

Equity Finance Pre-Money Valuation Denver 137

Business Plan Blog

DECEMBER 10, 2013

The most important principle of startup fundraising that every entrepreneur needs to know is: raise enough capital to achieve a set of milestones that will allow the company to attract the next round of investment. Product Development. Founding Team, Key Hires, Advisory Board. Market Validation.

Angel Investor 55

Angel Investor Intellectual Property Seed Capital Advisory Board 55

Gust

SEPTEMBER 5, 2012

Structuring this kind of seed investment as a loan only makes sense because, as it turns out, a convertible note is a convenient “hack” to make it quicker, easier and cheaper to inject seed capital into an early stage startup while giving investors some protection (debt is ahead of equity in line in the event the company is liquidated).

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Finance Convertible Security Equity Seed Stage 134

Business Plan Blog

JANUARY 7, 2014

5) The amount of money you should raise is the smallest amount of money that can have the biggest impact on your valuation in the shortest period of time. Download our free Raising Capital from Angel Investors eBook. This guide will walk you through the process of obtaining seed capital for your startup.

Search 55

Search Angel Investor Seed Capital Early Stage 55

Software By Rob

JANUARY 8, 2019

And to do this without the headache of traditional fundraising, loss of control, or the pressure to build a unicorn ($1B valuation) or even raise another round of funding. We are happy to speak with you at any revenue level, but somewhere in the $150k-range is when founders may start to look for seed capital.

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Early Stage Valuation Seed Capital Revenue 46

Business Plan Blog

NOVEMBER 22, 2013

A major piece of the business plan will be your capitalization strategy demonstrating the milestone timeline discussed above as well as the effects of accomplished milestones on the company’s future valuation. In your pitch to seed investors, you will need to show investors this need. Market Validation.

Intellectual Property 55

Intellectual Property Advisory Board Startup Seed Capital 55

Gust

OCTOBER 5, 2011

In most cases, an early stage startup will raise seed capital from more than one investor. This “ uncapped note ” example ignores the concept of a valuation cap , which we’ll take up in a future installment. Additional closings may be held up to 90 days after the Initial Closing at the option of the Company.

Finance 79

Finance Preferred Stock Term Sheet Early Stage 79

Rob Go

MAY 2, 2016

Actually, the average in the first half of the fund was quite a bit lower, but during this period (2011–2014) there was a pretty dramatic rise in seed stage valuations overall. Raising a seed round half as big usually does not yield half the dilution at this early stage. Our average round size in our first fund was about $1.2M.

Seed Stage 28

Seed Stage Dilution Valuation Seed Capital 28

Scott Edward Walker

SEPTEMBER 21, 2011

If you’re an entrepreneur looking for seed capital, but don’t know any sophisticated angel investors, you need to hustle and build relationships in order to get “warm” introductions. This approach will keep the financing relatively simple and inexpensive and will defer the company’s valuation (i.e.,

Preferred Stock 45

Preferred Stock Angel Investor Entrepreneur Common Stock 45

Rob Go

NOVEMBER 30, 2012

Because time is often the most precious resource for seed funds, it is increasingly important to make every investment more “impactful” in the case of success. This means greater focus on ownership, pre-money valuations, and dollars in. We see more and more funds “walk away” if they can’t get the numbers they hope to get.

Seed Stage 55

Seed Stage Pre-Money Valuation Dilution Early Stage 55

techcrunch.com

FEBRUARY 19, 2010

Not a big shock, but things don’t look pretty, especially in the venture capital world. According to VCs, there’s been a 65% decrease in up-rounds (where a company gets a bigger valuation) in the last six months and more than 60% of those polled expect a longer wait for an exit. A lot of the stats weren’t surprising. Translation?

Venture Capital 62

Venture Capital Technical Review Sweat Equity Valuation 62

Steve Blank

MAY 9, 2017

Their need to get into high-profile deals has driven late-stage valuations into unicorn territory. A unicorn is a startup with a market capitalization north of a billion dollars. What this means is that the emergence of incubators and super angels have dramatically expanded the sources of seed capital.

Restful 247

Restful Silicon Valley San Jose Puerto Rico 247