

Party Rounds: How To Get a Crazy Valuation For Your Seed Startup - eladgil
http://blog.eladgil.com/2010/09/party-rounds-how-to-get-high-valuation.html

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il
Here's the question that article didn't answer: If I'm currently bootstrapping
a startup, with no current connections or previous successful exits, straight
out of college without connections at a past employer, and I'm not in a
program like YC...

How do I start raising this round? Where do I find these superangels? Cold
call/email investors? Present at conferences?

~~~
rafaelc
<http://angel.co> \-- if you get through that filter, it's a (pretty good)
proxy for your chances at currently raising a round. And if you don't get
through that, you'll know there's more work to do before being able to raise a
party round.

~~~
eladgil
This is part of my next blog post - I think e.g. AngelList and YC are two
access points....

------
sabat
_Do you think Party Rounds are good or bad for the entrepreneur?_

Given the description in the post, how could they be bad?

~~~
pedalpete
I think they could be bad if the initial terms overvalue the company and
follow-on rounds dilute the seed investors in a down round, or if the initial
investors invest at such a high valuation that you can't even get other angels
interested.

The angel investor is negotiating the best deal for themselves, but they are
also negotiating at a valuation which will be appealing to follow-on rounds.

It is my understanding that if you overvalue your company at the early stage,
you could do significant harm to either your ability to raise capital later
and/or the investors of the seed round.

Also, the title says it 'how to get a crazy valuation', why does crazy ==
good??

~~~
sabat
Good points there. It seems like a more entrepreneur-friendly system, but who
ever is in control needs to stay sane. Temptation for overvalue and other
excesses is there regardless of who's at the helm.

