This higher risk level in health/pharma companies shows up in the way VCs structure their investments. In an early-stage round of financing for a software company, all the investors may dilute the founders by around 15 to 30 percent of the company’s stock. For a typical early-stage pharma or biotech company, investors may dilute the founders at a h
... See moreAli Tamaseb • Super Founders: What Data Reveals About Billion-Dollar Startups
Kauffman Fellows • Venture Fund Portfolio Construction | Journal | Kauffman Fellows
Valuations are a big mystery to many entrepreneurs. And for good reason. In the early stages, valuation is not a factor of revenue or much else. According to research done by Ilya Strebulaev, a professor of venture capital at Stanford Graduate School of Business, and his collaborators, most VCs, especially early-stage VCs, don’t use techniques such
... See moreAli Tamaseb • Super Founders: What Data Reveals About Billion-Dollar Startups
There’s a broad spectrum of VCs and founders, the latter of whom possess differing levels of capability to maintain high growth and continually raise equity dollars at inflated valuations. For example, there are many companies who raise an angel/seed round, then a Series A, spend most of it on customer acquisition which flows right into FB and Goog... See more
Alex Danco • It’s Not Debt, It’s Better: an Interview with Harry Hurst of Pipe
Early-stage investors will usually want to claim a high stake of your business, because of the risk they are taking. This is why at the seed stage, you could be giving up 10–25 per cent of your company. Now the venture capitalist will fund Series A, where you might give up 25– 50 per cent.