Stage | Valuation (Price) | Expectations (Value) |
---|---|---|
Preseed | Lowest valuations ($2-8m) | Seek out companies that have: (1) Strong team of founders and (2) A novel idea with some form of empirical evidence indicating demand. Typically invest pre-revenue and pre-product. |
Seed | Low valuations ($8-20m) | Seek out companies that have: (1) A track record of revenue growth (with monthly revenues in the $5-70K range), and (2) Significant operating data (6+ months). |
Series A | Varies substantially | Seek out companies that have: (1) Achieved a reasonable level of scale ($1-3m in annual revenue run rate for Series A), and (2) Shown strong growth and operating metrics. |