Jared Hecht: Funding 101

If you’re an early stage company looking for funding, GroupMe cofounder Jared Hecht has 3 tips to help you raise as much as possible and to feel confident you got the number right.

“So if you’re an early stage company and you’re trying to figure out what your valuation should be, there’s a couple things you can look at. One is the competitive landscape. Are there any people in your space that have raised rounds lately? What sized rounds have they raised? Usually, that’s a good indicator of what people evaluating specific companies in this space are like. The other thing that’s going to play a predominant role is supply and demand. If you have a bunch of VCs or angel investors trying to get in your round and you have several term sheets on the table, it’s a great way to leverage deals that you’re seeing and get really, really comfortable with. The thing that matters most, really, is that this is your company and you have the decision whether you want to raise money or not. So only settle on something if you’re confident on it and it feels really good. ” — Jared Hecht


More Stories