Half the price of the round.

Many will disagree, but I’ve thought about this a lot.

Your existing investors have good reasons to invest today at the next round price, or for say, a small discount (15–20%) to the next round price. “Bridge” rounds from existing investors are often with 10–25% discounts.

But new investors — that’s different.

Your existing investors are already in for a dollar. They’ve already put in $X. Putting in another 5% of $X is not only minor, but more importantly, the price is sort of irrelevant due to dollar cost averaging.

If you want me to invest as a new investor before there really is a round … I need a 2x step up to when the real round closes as a new investor into the company.

Otherwise …

It’s better to wait.

Start-up investing is incredibly risky.

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