My understanding is that it's very unorthodox to present
Posted: Sun Dec 22, 2024 9:28 am
A minimum pre-money valuation to investors prior to a term sheet. I believe this is because you're potentially "laying too many cards on the table" and you may actually be hurting yourself if the VCs planned to offer a higher pre-money figure. We did it both because we like to be transparent and because we hoped to prevent ourselves from wasting time with investors who couldn't meet our minimums.
Our hope was that by giving that number in t russia email list he first conversation (over the phone) and in the initial pitch deck, we'd achieve similar results as those we had in the past by publishing our prices for consulting - reduce the target market size and improve the quality. I tell this story about our VC experience to a lot of people - it seems to be a subject that attracts great curiousity and I, of course, love to share.
Most of the time, folks follow up by asking "are you disappointed?" and my answer has been the same since October. I'm not disappointed we didn't get funded. In fact, the more time passes and the more I think about the pitfalls that could have come with another round of investment, additional board members and pressure to reach $75-$100 million in annual revenue, the more I'm glad we didn't. However, I do regret the decision to seek funding - it cost our team countless days and weeks of productivity, took our eyes off our primary goal of delighting our members and customers and, in the end, was a learning experience with a shockingly high cost.
Our hope was that by giving that number in t russia email list he first conversation (over the phone) and in the initial pitch deck, we'd achieve similar results as those we had in the past by publishing our prices for consulting - reduce the target market size and improve the quality. I tell this story about our VC experience to a lot of people - it seems to be a subject that attracts great curiousity and I, of course, love to share.
Most of the time, folks follow up by asking "are you disappointed?" and my answer has been the same since October. I'm not disappointed we didn't get funded. In fact, the more time passes and the more I think about the pitfalls that could have come with another round of investment, additional board members and pressure to reach $75-$100 million in annual revenue, the more I'm glad we didn't. However, I do regret the decision to seek funding - it cost our team countless days and weeks of productivity, took our eyes off our primary goal of delighting our members and customers and, in the end, was a learning experience with a shockingly high cost.