Startups

Can't raise money

New
OLVa33

New

PRE
Facebook, Google
OLVa33more
Jan 4

We have a very strong engineering team, closed many customers, product ready for launch, competitive space, and a great vision / roadmap.

Despite the ex-Facebook and Stanford PhDs on the team, we are not getting love from the VCs.

Name your favorite cliche and we have heard it as an execuse.

We can get acquired by FB anytime if needed and seed investors will make 2x so not too bad. What would you do?

Getting acquired only 16 months in is not what we want but we ran out of money already.

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  • Microsoft omanuch
    What do you guys do?
    Jan 48
    • T-Mobile qqj410
      Not make money
      Jan 4
    • New
      OLVa33

      New

      PRE
      Facebook, Google
      OLVa33more
      OP
      We do make $100k per month
      Jan 4
    • New
      OLVa33

      New

      PRE
      Facebook, Google
      OLVa33more
      OP
      20 engineers in Palo Alto aint cheap son
      Jan 5
    • VMware BobbleHat
      So you are losing money
      Jan 5
    • Google amzng123
      You guys are idiots. Do you have any idea how VC backed startups work?
      Jan 5
    • Uber / EngBibiN
      OP why don’t you just lay off some engineers and use your revenue to pay for another year of runway?
      Jan 7
    • New
      OLVa33

      New

      PRE
      Facebook, Google
      OLVa33more
      OP
      We will be fine. We got our break finally
      Jan 12
    • Uber / EngNafBnt
      What happened?
      Jan 14
  • Obviously your $100K/mo revenue is not enough to justify whatever valuation you are seeking. You don’t have product market fit. So pivot or sell the team.

    BTW 2X is a big failure to your seed investors.
    Jan 47
    • New
      OLVa33

      New

      PRE
      Facebook, Google
      OLVa33more
      OP
      Hmmm ... 2x in less than a year is pretty good son. If you can do better, sign me up
      Jan 5
    • VMware BobbleHat
      No. They payed with the risk they took with you. It is a failure for seed investment.
      Jan 5
    • From seed to A round is usually 5X. For example $5M to $25M valuation. A successful seed investment is 50-100X.

      They’d rather lose the $ than a pathetic 2X exit.
      Jan 5
    • My current startup seed investors is already 7X after the A round and will get another 5X when B closes. 35X in less than 1.5 years. This is what they are looking for. Not 2X.
      Jan 5
    • Microsoft
      Shippedit1

      Microsoft

      BIO
      I print money.
      Shippedit1more
      Right. If I wanted 2x I’d just buy <name your favorite public tech stock>
      Jan 5
    • New
      OLVa33

      New

      PRE
      Facebook, Google
      OLVa33more
      OP
      Yeah, right. All tech stocks are down son
      Jan 12
    • New
      OLVa33

      New

      PRE
      Facebook, Google
      OLVa33more
      OP
      Our early seed investors are going to get 33x (in 2 years) and the later ones will get 10x in less than a year
      Jan 12
  • SAP Cabron
    Obviously sell. Better 2x than nothing. I don't think you can raise money in an ICO, can you? Easy money is gone
    Jan 41
  • Facebook public2
    They see something you obviously do not. Pivot.
    Jan 40
  • SAP Cabron
    I was in startup 1 year ago. Oracle offered to buy, CEO said no. We were not able to raise more money with investors and company broke letting 150 ppl to unemployment. As previous comment says, the investors maybe didn't see a reason to invest. All the nights of work and infrastructure to the trash
    Jan 41
    • Oracle / Productedxks
      What was the name of startup? Or what kind of product offering?
      Jan 4
  • Expedia anon_420
    Were you previously in a PM or technical role?

    Also if you don't mind me asking, what's your ethnic background, and how good would you say your people skills / presentation skills are?
    Jan 53
    • New
      OLVa33

      New

      PRE
      Facebook, Google
      OLVa33more
      OP
      Technical, non-white with good people skills. We closed $6M in seed and many customers without hiring formal sales people
      Jan 5
    • $6M is a big seed round. You are looking at $20-30M A round with a valuation of $80-100M which is near impossible with $100K/mo revenue.
      Jan 5
    • Google amzng123
      Yes, this explains it. Assuming you are B2B. Normal valuations for high growth B2B is 10x revs area. So back of envelope, you are worth 10-20mm, which is prob where you were with the 6mm seed.
      Jan 5
  • New DvVM00
    hiring 20 engineers in palo alto with seed money is your first mistake. that will be a crazy burn. my guess without further knowledge is that you built way way more than an MVP. fine if it’s your own money but you have to raise it.

    i’m guessing none of the founders / CEO have done a startup before.

    cut your burn immediately. lay off 75% keeping only a skeleton. skip out on your lease and all other accounts you can. in a desperate attempt to keep looking for money.

    speaking as a person who has also never founded a startup.
    Jan 51
  • Amazon mamazonian
    Do Indians get funding in USA?
    Jan 51
    • What do you mean? Lots of Indian founders in US raised money.
      Jan 5
  • Oracle / Sales
    SafraCash

    OracleSales

    PRE
    JPMorgan Chase
    SafraCashmore
    I’ve seeded over 10 companies and will take 2X over 0. What is the primary reason people won’t participate in the A round? Sounds like FB thinks your company has a certain valuation. If you came to me and said the valuation was 5X what FB thinks it is, I’d decline as well
    Jan 50
  • Informatica fdmnjhstk
    I can volunteer to work in team.. :)
    Jan 40
  • New mdGG61
    If B2C, how about crowdfunding?
    Jan 40
  • New mdGG61
    How big are your customers? If big enough they might be interested in investing. If they trully believe in you and your product, they're likely to.
    Jan 40

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