If company goes on to raise the next
round at a high valuation, the investor doesn't get any increase in that value.
Not exact matches
He went on to say that the first
round is closed and that the additional $ 50M will come from undisclosed strategic investors
at a
higher valuation.
When Facebook took on its first
round of financing in 2005, for $ 13 million, Parker pushed for a
high valuation of the company»» about $ 100 million
at the time.
An early stage company raising a venture
round at a very
high valuation means that VCs / Angels are willing to bet long on the business.
If it can seal the deal on this new
round at the reported $ 24 billion
valuation, it will be the second
highest - valued startup out there today, ranking only behind Uber.
Too big a
valuation at the starting line can set expectations too
high for future
rounds of capital.
New York - based Internet retailer Fab took in the
highest amount in a single funding
round, getting $ 150 million in June to put the company's overall
valuation at more than $ 1 billion.
If somebody gives you money under a convertible debt note
at a $ 2.5 m
valuation and another person funds you with convertible debt
at $ 5m
valuation (
high resolution financing) and your equity
round finally closes
at a $ 10 million
valuation... what technically happens?
The
valuation comes
at $ 105 a share, which is $ 12 a share
higher than its last
round valuation.
The key to this strategy is getting 5 people who form the social proof to help you get a bigger angel
round done
at a
higher valuation by tons of industry insiders and thus offering the social proof you need attract great employees and ultimately venture capital investors.
So in 2011 as a startup company if you can generate lots of demand you can definitely raise an A
round of capital (say $ 3 million)
at a $ 7 or 8 million pre-money
valuation or slightly
higher whereas just two years ago you would have struggled.
If Viscount is successful on either front, the company will be able to raise its next
round of capital
at a significantly
higher valuation.
The IPO valued Credible
at $ 300 million, which is twice as
high as the
valuation it received during its last
round of funding.