Posted by jonnycombust on 2011-06-05
Mark Suster, General Partner at GRP Ventures and Writer at "Both Sides of the Table", is keynoting our upcoming Founder Showcase event on June 15th. Today he previewed his talk with an editorial published on TechCrunch. Here is an excerpt from his bullish article:
"It’s OK to try and shoot for the “top end of normal” for the market conditions. 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. That’s fine. That’s the deal you get when you’re raising in a good market for startup financing....
So my advice: go ahead and ask for a valuation that 2 years ago wouldn’t have been likely. Use competition to make sure you get a fair price. Raise a slightly higher round than you would have previously, but keep some amount as a strategic reserve. Make sure that when you need to raise your next round of funding that you are able to show an uptick in valuation that is important for new investor confidence, and to maintain great relations with your early investors."
Tickets will sell out this week - click here for more information.PRIVATE: Members Only