Valuation of the seed round with friends and family

Posted on 06. Oct, 2008 by squareroots in Pre Venture Capital

The balance between the founders and the investors is critical for any early stage company.  This is true even with investments from friends and family.  Consider two situations:
High pre-money valuation
Example: a pre-money valuation of $10M for a pre-revenue software company.  Although this would appear to favor the company and the founders, what may result is [...]