Remove reduce-risk-and-increase-your-valuation
article thumbnail

How to increase your valuation by reducing risk       

Berkonomics

Why reduce investor risk? In the creation of a young company, there are five principal risks to be addressed by the entrepreneur. Professional investors will probe these five risk areas and make the decision to invest based upon comfort with each. First: Product risk. Second: Market risk.

article thumbnail

The Berkus Method: Valuing an Early-Stage Investment

Berkonomics

Because the Internet has such a long memory and documents from the distant past can be found with ease, a search the “The Berkus Method” today will yield several conflicting valuations culled from the many subsequent publications of the method over the ensuing years. How do you value pre-revenue companies?

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

How much of my business do I have to give to an investor?   

Berkonomics

We’ll cover what information you’ll expect to provide, your range of expected values and amounts of investment to expect. All to help you set your expectations. Know your numbers And you should “know your numbers and be able to defend them” during early meetings with candidate investors. How much money can you get?

VC
article thumbnail

Praise Our Lord For Secondary Markets, Because Selling Shares Is Now an Essential Part of (Seed) Venture Capital

Hunter Walk

I entered venture capital with some beliefs – many of which still hold true (such as ‘your LPs are your business partners, not your customers’). You’re told ‘illiquidity is a feature, not a bug’ and ‘let your winners ride.’ That’s a 2025 milestone as Homebrew turns 12.5

article thumbnail

Why We’re Looking to Fund Stuff With More Meaning

Both Sides of the Table

If you’re funding the same stuff as everybody else and if you started your activities when the clues were obvious you’re much less likely to drive enormous returns. I know – I was there when the first people debating funding it at less than a $5m valuation. Venture Capital is a tricky industry. Far from it.

article thumbnail

Fauxmentum

Both Sides of the Table

Startup companies continue to grow at unprecedented rates, raise enormous amounts of venture capital and achieve valuations that imply that they will continue to grow rapidly for the foreseeable future. I’m not saying don’t hire sales staff or market your products aggressively. We live in heady times.

article thumbnail

How we dodged risks and raised millions for our open-source machine language startup

TechCrunch

Our area of innovation is an open-source AutoML server that reduces model training complexity and brings machine learning to the source of the data. However, they need to understand any inherent risks involved when successfully commercializing an innovative idea. Jorge Torres. Contributor. Share on Twitter. Adam Carrigan. Contributor.