Funding & Valuatino

Ref:

Capital Raise:

  1. Seeding
    • From FFF (Fool, Friend, Family), Angle Investor, Incubator
    • Between $500,000 and $2 million
  2. Series A:
    • Developing a business model, even if they haven’t proven it yet
    • Investment between $2 million - $15 million
  3. Series B:
    • Market fit and needs help expanding
    • Investment between $7 million and $10 million
    • Company valuation between $30 million and $60 million
  4. Series C:
    • Ready to expand to new markets, acquire other businesses, or develop new products
    • Investment avg $26m
    • Company valuation between $100 million and $120 million
  5. Series D:
    • Many companies finish raising money with their Series C
    • Discovered a new opportunity for expansion before IPO or hasn’t hit the expectations laid
  6. Series E:
    • They’ve failed to meet expectations;
    • they want to stay private longer;
    • they need a little more help before going public

Valuation

Fixed Equity Split

Dynamic Equity Split

Not Fair = Not Fun