Comment by fleaflicker | Hacker News Reader

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Comment by fleaflicker | Hacker News Reader

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A lot of startups seem to be raising seed rounds in the $1.1M-$1.3M range (a cursory HN search turned up seven in the past few months, links below).

What kind of valuations are they getting? Anybody willing to post anonymously (or otherwise)?

Gumroad $1.1M http://news.ycombinator.com/item?id=3568962

Curebit $1.2M http://news.ycombinator.com/item?id=3520175

RJMetrics $1.2M http://news.ycombinator.com/item?id=3419670

Ginzametrics $1.3M http://news.ycombinator.com/item?id=3239636

Zoomingo $1.3M http://news.ycombinator.com/item?id=3235490

Tealium $1.1M http://news.ycombinator.com/item?id=3447834

Cloudability $1.1M http://news.ycombinator.com/item?id=3395361

Quite a few startups that I know are doing a rolling close ... So the early investors get a better valuation for coming in early without asking the perennial, 'Who else is in the deal' question. Investors who come in later pay a premium since the startup has been derisked (at least from a fund-raising perspective)... So I think often there isn't a single valuation for these rounds.

You can assume those went down in the range of $2-$4M pre-money for a priced round (a single seed investor will want between 20-40% of the company, depending on how strong the team/traction is). Many seed rounds are convertible notes, however, which are not priced, but rather pegged to a Series A with a cap and discount.

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