the best way to avoid getting over-diluted
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the best way to avoid getting over-diluted
Our best advice to entrepreneurs on maximizing price is to focus on what you can control and get several different VCs interested in your financing.
Brad Feld • Venture Deals: Be Smarter Than Your Lawyer and Venture Capitalist
Remember, plans always get more complicated once they're put into practice — never less.
New priorities emerge, market forces change, and everything takes longer than you expect. Your plan needs focus — likely more focus than you might feel comfortable with.
review.firstround.com • The Secret to a Great Planning Process - Lessons from Airbnb and Eventbrite
5. Fundraise and financialsWhat milestone will the capital get you to?Why do you need to raise money? How much money do you really need? Why don’t you need less How much dilution will you give up? What is your pre-money target range?What will you use the capital you are raising for?What are your basic financial projections?
Elad Gil • Questions VCs Will Ask You
When VC money is a BAD IDEA 👇
1️⃣ Your model is not scalable/capital-efficient
A typical seed VCs looks for 100x return within 7 to 10 years.
That's why tech businesses are usually preferred over retail or services.
High scalability, high capital efficiency.
2️⃣ Your SAM is under $1B
Hard to assess because you could pivot and/or create ... See more
Founders should decide how much to raise based on how much money they need to reach the next set of milestones. Startups have many layers of risk stacked on top of each other. Leo Polovets, managing partner at Susa Ventures, calls startups a “bundle of risk.”6 These risk layers could be as broad as “product risk,” but ideally the risk layers should
... See more