Founder Fridays No. 66
Happy Funding Friday!
This week we lost an intellectual giant. Charlie Munger, the witty vice chairman of Berkshire Hathaway, passed away at 99 years old. I’ve learned so much about human psychology, discipline and business from him over the years. He was instrumental in teaching me mental models (see a clip about that at the bottom of the newsletter.) He was always so fun to watch because he was a great combination of surly and wise. Coincidentally, the new edition of Poor Charlie’s Almanack: The Essential Wit and Wisdom of Charles T. Munger is being released on Tuesday. I’m picking up a copy.
Now… Let’s recap the November startup funding data below. I hope this is helpful for you.
Pre-Seed
Median Money Raised:
$1,080,000
Median Post-Money Valuation:
$9,000,000
Seed
Median Money Raised:
$2,839,375
Median Post-Money Valuation:
$19,250,000
Series A
Median Money Raised:
$9,296,250
Median Post-Money Valuation:
$55,500,000
Series B
Median Money Raised:
$21,965,000
Median Post-Money Valuation:
$95,500,000
Startup Funding Guides
I’ve put together a series of guides to equip founders to excel at fundraising. These guides break down the deal term by term and give you negotiation tips so that you can speak to investors with confidence.
Convertible Note: Guide / Video
Should a Seed Round Cost $100,000?
A friend recently told me his relatively straightforward $7M seed round cost over $100,000 in legal fees - much higher than initially quoted. Unfortunately, this is becoming more and more common. However, for an experienced startup law firm, a standard seed round based on NVCA docs should cost $20,000 to $40,000 all in. At my firm Westaway, this complete seed round package is a flat $25,000. (It’s also included in our General Counsel – Grow plan.) No runaway legal costs. No surprise bills. Just clear transparent pricing. If you’ve got an upcoming fundraise, let’s chat. Schedule a call with me.
Post of the Week
