Why Startups Should Raise Money at the Top End of Normal

Editor?s Note: This is a guest post by (@msuster) Mark Suster, a 2x entrepreneur, now VC at�GRP Partners. Read more about Suster at�Bothsidesofthetable

It's 2011 but you could forgive yourself for thinking you've gone back in a decade old time capsule to a time with frothy valuations and easy money. I know, I know. It's not the same market. There are more users now using the Internet for more of their lives. And there is real revenue now although as we've discovered recently - not always profits.

The fact remains - raising money has consequences. Raise at too low of a price and you take too much dilution. Obvious. But raising at too high of a price can potentially cause you even worse problems. Existential ones.

My motto is that startups should raise "at the top end of normal." Read on to undertand why ...

phone headset phone watch phone cord detangler phone watches