Remove category
Remove Acquisition Remove Entrepreneur Remove Equity Remove Pricing
article thumbnail

Don’t Try to “Pull an Instagram.” Here’s Why …

Both Sides of the Table

. “it’s smart to use an impending investment valuation to drive a higher acquisition valuation” I would like to amend her statement slightly to read, “it’s smart to use an impending investment valuation to drive an higher acquisition.” You are either bought for stock or for equity.

article thumbnail

7 Seed-Stage Funding Sources To Finance Your Startup

Startup Professionals Musings

I challenge any entrepreneur, for example, to define the difference between "seed-stage" and "early-stage" financing. Most investors won’t touch a first-time entrepreneur at this stage. Ron Conway , of SV Angels, and Reid Hoffman , LinkedIn's founder, are names often mentioned in this category.

Funding 104
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

5 Clues To Investor-Friendly Financial Estimates

Startup Professionals Musings

Most entrepreneurs struggle with financial projections, not wanting to commit to numbers they can’t deliver, and having no clue what investors might consider reasonable. Here are some basic “rules of thumb” that every Angel or venture capital equity investor uses, to help you anticipate their reactions. Gross margins greater than 50%.

Equity 99
article thumbnail

5 Rules of Thumb for Startup Financial Projections

Startup Professionals Musings

Most entrepreneurs struggle with financial projections, not wanting to commit to numbers they can’t deliver, and having no clue what investors might consider reasonable. Here are some basic “rules of thumb” that every Angel or venture capital equity investor uses, to help you anticipate their reactions. Gross margins greater than 50%.

Startup 97
article thumbnail

What is the Right Amount of Money to Raise at a Startup?

Both Sides of the Table

I’ve seen too many entrepreneurs try to do things on the cheap. Google suddenly makes your product category free). - Let’s assume that the $2 million buys 25% of your company, which is the norm in an equity financing. They can fund a deal if necessary and valid at the time you present an acquisition target to them.

Startup 319
article thumbnail

Interview with Scott Cannon, CEO of BigRentz

socalTECH

We sold that to a very large private equity company. You have to make sure your cost of acquisition, retention rates, and conversion metrics are all in place. We went a little too fast, and took on too many categories at first. Then there was haggling back and forth about price. One of my partners was St. Cloud Capital.

Startup 174