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> I'd close the first, say, $200k from the first reasonably good investors that offer it on reasonable terms--say a $5 million pre-money valuation or higher. T
by volaski 11y ago
> I'd close the first, say, $200k from the first reasonably good investors that offer it on reasonable terms--say a $5 million pre-money valuation or higher. This removes some uncertainty and pressure, gives you capital to execute with while raising the rest of your round, puts you in a stronger position, etc. It's worth a discount for all of this.
Wow 5MM pre-money for seed is considered reasonable (and considered a discount) nowadays? Or have I misinterpreted?
- jkaljundi 11y agohttps://angel.co/valuations https://angel.co/valuations shows $6.5m average for YC, $6–8M 25 th / 75 th (does not include valuations over $10m).
- mojuba 11y agoI also find it strange to mention numbers without saying whether it's revenue generating, MVP or what.
- jedberg 11y agoYes. Pretty much any investor you talk to will "lowball" with 2 on 6. 5M would be a discount. I'll make no judgement on whether this is bad or or not.
- argonaut 11y agoKeep in mind the "tech startup slowdown" that the media is talking about right now is pretty much concentrated in the late stage: Series A and later. There are still tons of angel investors out there.
- ryporter 11y agoFor YC companies, which also benefit from a Bay Area premium. Up here in Seattle, 5MM is not a discounted, seed stage, pre-money valuation.