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June 5, 2011 05:22 pm GMT

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 atGRP Partners. Read more about Suster atBothsidesofthetableIt'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 ...

Original Link: http://feedproxy.google.com/~r/Techcrunch/~3/wxIkwu0MSHE/

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