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Mercury

6 resources from Mercury we point founders to, and the questions each answers.

📄 Article
✓ Link checked Free Intermediate

Why we picked it Once you accept that the market sets the price, this piece shows you the actual methods investors reach for when there is no revenue to anchor on: comparables from recent deals, the scorecard method, the VC method working back from a target exit, and Berkus. Knowing the frameworks on the other side of the table lets you run a tighter process and read whether a term sheet is priced off real comps or a founder's optimism.

How early-stage startups are valued by seed and Series A investors

From Mercury by Mercury 12 min read

  • With no revenue, investors lean on comparables and scorecards weighted by team, market size, and traction, not a DCF
  • The VC method reverse-engineers your price from the fund's required multiple, which is why a 5M dollar entry needs a plausible 100x story
  • Valuation here is openly 'as much art as science', so multiple credible bidders move the number more than any single method
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📄 Article
✓ Link checked Free Intermediate

Why we picked it This is the mechanical playbook for the 'send to 15 who actually invest, not 50' point: build a long list from Crunchbase, AngelList, and Pitchbook, then qualify each name by their most common round, whether they lead or follow, their check size, and their domain expertise, and stack-rank down to a top 30. It tells you exactly which fields to fill in a spreadsheet so you stop blasting funds that never write your stage or sector.

Creating a target investor list for your seed round

From Mercury by Mercury 12 min read

  • Qualify every investor on stage, lead-or-follow, check size, and sector fit before they go on the list, so a thesis mismatch never eats a slot
  • Pull raw names from Crunchbase, AngelList, Pitchbook, and the firm portfolios of companies like yours, then organize in a Notion or Airtable tracker
  • Stack-rank to a top 30 and pitch in waves: refine on second-tier funds first, then hit the ones you most want with a sharpened story
Open mercury.com
📄 Article
✓ Link checked Free Beginner

Why we picked it This is a clean, plain-language walk through the numbers that decide whether your pricing actually works: contribution margin, CAC, LTV, and payback period. Written by Mercury's CFO, it connects the dots you need here, that moving from underpriced plans to value-based pricing and better-packaged tiers is what lifts LTV and contribution margin. Use it as a starting point to pressure-test whether the price you are considering leaves enough margin after you have paid to acquire the customer.

What is unit economics, and does it matter for your startup?

From Mercury by Dan Kang ~12 min read

  • Contribution margin (price minus variable cost per unit) is the first thing to check, if it is thin or negative, no amount of scale fixes it.
  • Pricing directly shapes revenue per unit and LTV, so raising or repackaging price is often the fastest lever on your economics.
  • Read your LTV against CAC and payback period together, a price that looks fine in isolation can still lose money once acquisition cost is counted.
Open mercury.com
📄 Article
✓ Link checked Free Beginner

Why we picked it This lays out the real downstream cost of mixing personal and business money in plain terms: messy books, harder taxes, missed deductions, and the risk of piercing the corporate veil so creditors can reach your personal assets. It is written by a business bank, so read the credibility and business-credit points as their pitch, but the core reasoning holds anywhere. It makes the case for acting early instead of untangling a commingled account later.

Why you need a separate bank account for your business

From Mercury by Mercury

  • Commingling can pierce the corporate veil, which means a company debt could reach your personal savings.
  • Separate accounts give you clean books and clean tax records, so you actually see cash flow and profitability.
  • The pain of separating funds later is worse than opening the account now, so do it early.
Open mercury.com
📄 Article
✓ Link checked Free Beginner

Why we picked it A clear breakdown of incentive choices (free trial, discount, pilot fee) for getting first traction without simply giving the product away. Helpful for finding the small, credible offer that still gets a card on file. It reframes the question from free versus paid into which paid adjacent incentive fits your buyer.

Free Trials vs. Discounts: Choosing the Right Startup Incentive

From Mercury by Mercury

  • A discount or a pilot fee still captures a real payment signal.
  • Free trials work best when they are short and actually convert.
  • Match the incentive to how your specific customer prefers to buy.
Open mercury.com
📄 Article
✓ Link checked Free Beginner

Why we picked it A balanced walkthrough of when building in public helps and when staying quiet is smarter, without pushing you either way. It is a good first read to frame the decision for your specific stage and product. Use it to figure out which parts of your build genuinely benefit from an audience.

Building in public: Is this the right approach for your startup?

From Mercury by Mercury ~10 min read

  • Building in public suits some products and stages more than others
  • The benefits are trust, feedback, and distribution, weighed against exposure
  • Decide deliberately what to share rather than defaulting to all or nothing
Open mercury.com
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