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How Much Should You Raise in Your VC Round? And What is a VC Looking at in Your Model?

Both Sides of the Table

There’s a quick litmus-test conversation any early-stage VC will have with the founder and it’s one that you should be as prepared for as your elevator pitch. It goes something like this … VC: “How much money are you raising?” Founder: “$8–10 million” VC: “What’s your current burn rate?” A VC is looking for reasonableness.

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How to Talk About Valuation When a VC Asks

Both Sides of the Table

One of the hardest things about the fund-raising process for entrepreneurs is that you’re trying to raise money from people who have “asymmetric information.” VC firms see thousands of deals and have a refined sense of how the market is valuing deals because they get price signals across all of these deals. So why does a VC ask you?

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How Many Investors Should You Talk to in a VC Fund Raise? And How Do You Prioritize?

Both Sides of the Table

The typical VC process is as follows: They say there are three rules in property: Location, location, location. The surest sign a fund-raising process has stalled is when you aren’t getting follow-up meetings or hearing from the VC or hearing from friends that they got a phone call or email asking about you. Same with VC.

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Venture Capital Q&A Session

Both Sides of the Table

We received so much positive feedback from our This Week in Venture Capital show walking through valuation calculations & term sheets that we decided to do a Q&A show this week to address topics that entrepreneurs want to learn about. on the entrepreneur side of the table) when I raised at too high of a price.

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Premature scaling can kill your business.

Berkonomics

Many, many companies accepting venture capital lost it all following this instruction. VCs have a goal of creating extraordinary value for their investors. The cost of each exercise was dramatic, far beyond what a founder-entrepreneur would order to be spent when using their capital or reinvesting cash flow from operations.

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This Week in Venture Capital – Episode 3

Both Sides of the Table

So there is likely robust demand from borrowers. entrepreneur Wil Schroter (I am an angel investor in Affordit). The idea is that in a world in which companies need to deal with customer support requests from Twitter, Facebook, email, phone, IM, etc. Collaboration in business starts and ends with email. Enter Xobni.

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What Tech Entrepreneurs Could Learn from Chamillionaire

Both Sides of the Table

On why you should be an entrepreneur, “A lot of people do what they have to do. So it was my great pleasure to host Chamillionaire on This Week in VC this week talking marketing, entrepreneurship, old media and, of course, music. In his early career he realized the importance of email lists.