As the result of us presenting TransparentBusiness at various investment conferences and getting more visibility in the news media, we’ve been approached by some large VCs, investment banks and Private Equity funds. Some of them said that they’d be keeping us "on their radar" for larger rounds and that our current $10M round (of which only $6.5M remains) is too small for them to consider.
Quite a few of the institutional investors asked us why we’ve been limiting ourselves to raising relatively small amounts from individual investors instead of raising larger amounts from VCs or other funds. To avoid having to respond on this question again and again, we''ve recorded the video response posted below.
The current realities of tech funding are reflected in many industry reports, including:
- the New York Times report, $100 Million Was Once Big Money for a Start-Up . Now, It’s Common. Known as a mega-round in Silicon Valley, large-scale fund raising is producing a frenzy around tech companies with enough reach and momentum to absorb a large check.”
- Forbes' "Startup Valuations Are Still Skyrocketing. Why?" article, which includes this data: "Over the past five years, median pre-money valuation for seed rounds increased from $5 million to $7 million. The increase in median pre-money valuation is even more pronounced when analyzing series A round and B round valuations: Between 2013 and 2018, the median A round valuation more than doubled, from $9 million to $20 million. B round valuation nearly doubled, from $31 million to $60 million. Valuations are on the rise.”
- Our seed founding was provided by the co-founders - Alex Konanykhin and Silvina Moschini;
- Instead of the $9M-$20M A round, we did a $1.8M round via Convertible Notes;
- Instead of the $31M-$60M B round, we are raising $10M from individual investors.