I am really glad I haven’t gotten funding for this same exact reasoning. It forced me to be better and because of it I have a whole new level of break through with what I have.
That's all going to depend on your negotiation skills. I imagine $500K is pre-seed. I would not give away more than 20% of the company if you have a clean cap table. That puts you at a $2.5 million post-money valuation, which is reasonable. but again, so many factors here that can change this.
Love how you teach us stuff as if you're spoon-feeding us! Sometimes I wonder whether you are reading our minds, I had questions in my head, and I watched your video, and I got the answers to those exact questions, interesting. I'm still struggling with inflection point though, say I have zero customers, after advertising now I have 6000 potential customers on my waitlist, would that be a good example of an inflection point?
I appreciate it. It's only an inflection point if you can show what value those 6,000 potential customers represent. For example, why did they sign up? Can you say that they signed up for a trial or pre-orders? Remember, inflection points are all about increase value. So make sure you calculate and show it.
They signed up to subscribe to our veg subscription (once it's their turn | first come first served), we can only serve a maximum of 660 out of the 6000, so it's $19 x 660 per month, is that what you mean by value? Is that an inflection point?@@edkang99
@@edkang99 I meant a risky enterprise. If there is rapid growth or positive ROI, it is not risky anymore. The cost of money from VC or angel investors is huge because of the risk
The "VC factory" model (or meatgrinder if you will) has been the dominant model for some time... This is one of the first times in a while that I am hearing a "back to basics" approach along the lines of building a profitable business versus one that can reach VC scale
Is it ok pitch (pre-seed) multiple ideas in the same vertical/category to the same investor .. do they see it negatively?
I am really glad I haven’t gotten funding for this same exact reasoning. It forced me to be better and because of it I have a whole new level of break through with what I have.
Keep it up. Great mindset!
Love the inflection point thinking. I’m glad I can now put a name to the approach I’m taking to my latest project 😅
Nice! Let me know how it goes.
brilliant! $500k, equity, how much?
That's all going to depend on your negotiation skills. I imagine $500K is pre-seed. I would not give away more than 20% of the company if you have a clean cap table. That puts you at a $2.5 million post-money valuation, which is reasonable. but again, so many factors here that can change this.
Valuable ❤
this vid is a 💎
This was excellent information, Ed. Your information has tremendously helped me on my journey.
Glad it was helpful! And I appreciate sharing in the journey.
Love how you teach us stuff as if you're spoon-feeding us! Sometimes I wonder whether you are reading our minds, I had questions in my head, and I watched your video, and I got the answers to those exact questions, interesting. I'm still struggling with inflection point though, say I have zero customers, after advertising now I have 6000 potential customers on my waitlist, would that be a good example of an inflection point?
I appreciate it. It's only an inflection point if you can show what value those 6,000 potential customers represent. For example, why did they sign up? Can you say that they signed up for a trial or pre-orders? Remember, inflection points are all about increase value. So make sure you calculate and show it.
They signed up to subscribe to our veg subscription (once it's their turn | first come first served), we can only serve a maximum of 660 out of the 6000, so it's $19 x 660 per month, is that what you mean by value? Is that an inflection point?@@edkang99
Where is the venture in such type of investment?
I'm not sure I understand your question. What do you mean by the word "venture?"
@@edkang99 I meant a risky enterprise. If there is rapid growth or positive ROI, it is not risky anymore. The cost of money from VC or angel investors is huge because of the risk
very enlightening, hearing about inflection points answers so many of my questions
Thank you!
Thanks Ed! So true! You need to do what works for the environment we are in. I think you are spot on for where things are and where they are going!
Absolutely!
This is gold. This what I always thought traction was.
Glad it reaffirmed you.
Interesting 🧐🤔
Specifically, what is interesting to you? I'm curious.
The "VC factory" model (or meatgrinder if you will) has been the dominant model for some time... This is one of the first times in a while that I am hearing a "back to basics" approach along the lines of building a profitable business versus one that can reach VC scale