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If you're outlook is a $10M or even $100M valuation, VCs and even angels would not interested.

• jacquesm 12y ago
  Plenty of funds would be happy with exits in the $100M range. The billion dollar exits or IPOs are the exception, not the rule and a $50M exit is a damn sight better than a failure. Of course it all depends on when they joined that particular party, the later in the game the higher the exit would have to be to make those investors happy.
  • acgourley 12y ago
    Certainly they would pop a bottle for that 100m exit when it happens, but at the funding stage there is a case to be made for chasing deals in markets large enough that a 10B exit is at least possible. Because 10B might happen and that does a lot to the EV calculations. Even if it doesn't, some might think that startup has a better chance for reaching the 100M mark sooner.
  • toong 12y ago
    Of course is $50M exit a lot better than a failure. My point was: if $50M is your maximum potential - if everything goes perfect - it'd be pretty hard to get some interest from VCs. For their math to work out, they need at least the potential for an exit a few orders of magnitude more than their investment. If VC rounds start at $1M, a max potential of $50M will not be taken into consideration so easily ?