| Cautions about Raising Too Much Money | May 01, 2007 |
David Frankel
|
Altirah Capital |
Endeavor's Entrepreneurs' Summit |
| Views: 4421 |
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| Video 10 of 16 from this talk |
- 01:56Managing the Tradeoff between Venture Partner and Financial Terms
- 02:04Raising Money outside Silicon Valley
- 04:13How to Pick a Venture Partner
- 01:52Advice about Term Sheets
- 03:39What to Expect and to Avoid in Term Sheets
- 01:44Replacing Yourself as CEO
- 01:28Leadership Is the Scarce Input for a Startup
- 03:49How to Attract Great Talent
- 04:01How Much Money to Raise?
- 01:20Cautions about Raising Too Much Money
- 01:52Option Pools and Sharing Wealth with the Team
- 02:30Setting Valuation
- 01:53Creating Real Value: Substance over Form When Raising Money
- 02:40Using Agents to Help Raise Money
- 02:40Venture Funding Challenges in Emerging Economies
- 01:21Which Investors Add Value
Description
David Frankel, Founding Partner at Altirah Capital, cautions against raising too much money in an early round for two reasons. First, if things go poorly and the firm receives a lower valuation in the next round (down round) then substantially funding the venture will be difficult. Second, if you raise an appropriate amount of money in an early round and things go well you can always raise more money in a later round at a higher valuation.
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