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With $5 million, the investors/founders believe it can be at least a $10 million dollar company in the next 5-7 years. The $5 million investment did not buy th
by gravitycop 18y ago
With $5 million, the investors/founders believe it can be at least a $10 million dollar company in the next 5-7 years.
The $5 million investment did not buy the entire company, so the valuation might be north of $10 million right now. Did you perhaps mean $10 billion?
- arockwell 18y agoHe probably just slipped a digit and meant $100 million. I figure that if you take VC money you believe you can build a company worth $100 million.
- gravitycop 18y agoI figure that if you take VC money you believe you can build a company worth $100 million. Granted VC David Hornik in the following video is referring to revenue potential, I still think that what he says implies that VC's are looking for investments with potential exits far greater than $100 million. http://www.youtube.com/watch?v=epdTQf0ZhPE http://www.youtube.com/watch?v=epdTQf0ZhPE "Billion dollar companies? We like those, but we really prefer $100 billion companies." -David Hornik, August Capital
- arockwell 18y agoTo clarify I meant that as a lower bound. In other words, don't take VC money unless you believe you can create a company worth at _least_ $100 million.