Live data from Hacker News

How to Raise Investment

tomblomfield.com

41–44 of 44 posts

Re: How to Raise Investment

#41

Earlier quoted context omitted.

Interesting to read those valuation benchmarks. I'd seen this article in SeedLegals previously https://seedlegals.com/resources/how-to-value-your-company/ that seem to be quite a lot lower. It was written at the end of 2019, do you think it's just wrong? Or has it changed that much in the past 2 years? Or is it a different set of startups?

Hi Tom, it's Anthony from SeedLegals here, author of that article. Actually I've seen nothing to suggest that valuations have changed since our article. If you're seeing differently, all feedback welcome. I should add that I always have a lingering concern that so many people reference that article - both founders and investors - that in some ways it's moved from reflecting market to making market... which means the…

I have made 43 angel investments in the last 6 months, 90% at seed and pre-seed. 75% in the UK.

The lowest valuation I've paid was £3m, and this happened exactly once.

My mean valuation for seed is around £8-10m.

It tops out at around £20m.

Perhaps my sample is skewed. Not many of the companies I'm investing in use SeedLegals. Investors often insist they use actual lawyers.

Re: How to Raise Investment

#42

Author here - happy to answer any questions

Hi Tom, just want to say I love what you did with Monzo. I briefly met you back in 2018 at a Monzo meetup when you were on City Road, and it was so amazing to meet the people who created Monzo in-person. And the food was the best of any Meetup I've been to since!

Looking forward to seeing whatever you do next!

Re: How to Raise Investment

#44

Earlier quoted context omitted.

Thanks for the insights. Makes a ton of sense. So the main question as a corollary to your statement is: How do you effectively create investor FOMO? Do you have any experience to share here as well?

> How do you effectively create investor FOMO? By succeeding. That sounds either snarky or obvious, however, I mean it quite literally. The absolute single best way to create investor fear of missing out, is to actually succeed at what you're doing. There's nothing close to that. Succeed at whatever stage you're at and be able to demonstrate that to the potential investors. If you're the real deal, you can build, exe…

Spot on, nothing to add to this.

"Make something people want" is the #1 fundraising hack. If you do it well enough, fundraising isn't an issue.

Post reply on HN