What percentage of ownership do investors acquire at each financing stage? — If you’re a startup founder, you may struggle to find a reasonable percentage of equity to give your investors in return for their capital. While this is still something you need to figure out on a case by case basis, here’s some data to help guide your judgment. Background Earlier this…

The following is a condensed and slightly modified version of a Radicle working paper on the startup economy in which we explore post-money valuations by venture capital stage classifications. We find that valuations have interesting distributional properties and then go on to describe a classical statistical model for estimating an…

To better understand coin correlations we deployed an Affinity Propagation algorithm and found three distinct clusters of crypto assets, at the top end of the market capitalization table, that move in tandem. Introduction A few months ago Radicle’s research team began working on a blockchain composite, not as an investment vehicle…

A measure of startup competition. — How can we measure competitiveness in private startup markets? And what does it really mean when a company raises over $100m in institutional venture capital? Lemonade ($120m), Vacasa ($103m), Compass ($450m), Slack ($250m), Reddit ($200m), and Peloton ($325m) — these companies have all recently raised massive rounds of capital, but…

A few weeks ago in an article titled “How much runway should you target between financing rounds?”, we discovered that the conventional wisdom of targeting 12–18 months of runway between financing events could be a factor that leads to startup failure. We’re delighted with the positive response to that piece…

Entrepreneurs have limited access to hard data that could help them make sound decisions when trying to build a successful new company. This is generally due to a fundamental lack of information about the materialized events of previously successful companies. Consider that there are a few hundred thousand companies founded…

If you look at any TechCrunch article that announces the latest round of funding for the next promising startup, you’ll notice that the amount of capital raised by the company is placed on equal footing with the quality of the investors that are betting on the company. Taking an example…