Both Sides of the Table

MAY 24, 2021

This is true in consumer but it’s also true in enterprise software. Case in point, Procore just went public and is trading at an $11 billion valuation. sold to Disney for $670 million and since our first investment was at < $10 million valuation we did quite well. This “overnight success” was first financed in 2004.

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Venture Capital LP Valuation Later Stage 363

Up and Running

JULY 24, 2017

Valuation, in this context, is controversial. Valuation is what you say your company is worth, a number that determines how much ownership you give away for investment. Outline your personal net worth. Where investors want to see management team startup experience, bankers want to see personal net worth of business owners.

Software Review 151

Software Review SBA Due Diligence Business Plan 151

YoungUpstarts

DECEMBER 31, 2017

That is incredibly exciting and is why we have these ridiculous valuations on technologies that barely/don’t work. Open source vs closed source software so we can see how the algorithms that control our lives work. In the venture business, you wait for these moments to come because they are where the big opportunities are.

Algorithm 251

Algorithm Internet Mobile API 251

Startup Professionals Musings

MARCH 16, 2016

This term is currently applied to recent startups who profess a current valuation which exceeds $1 billion. People are even talking about “decacorns" -- investable companies with net worth now exceeding $10 billion -- like Dropbox and Pinterest. Frothy startup valuations. Prime examples include Uber, Airbnb and Snapchat.

Software Review 120

Software Review Sweat Equity Accredited Investor Angel Investor 120

Startup Professionals Musings

SEPTEMBER 6, 2010

Once you have a potential investor excited about your team, your product, and your company, the investor will inevitably ask “What is your company’s valuation?” How much is NewCo worth to investors at this point (pre-money valuation)? This is the most concrete valuation element, usually called the asset approach.

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Valuation Pre-Money Valuation NPV Startup 234

Gust

NOVEMBER 18, 2012

Once you have a potential investor excited about your team, your product, and your company, the investor will inevitably ask “What is your company’s valuation?” How much is NewCo worth to investors at this point (pre-money valuation)? This is the most concrete valuation element, usually called the asset approach.

Valuation 187

Valuation Pre-Money Valuation NPV Intellectual Property 187

ReadWriteStart

OCTOBER 22, 2019

These are highly-skilled people that make up critical parts of your software development teams. And they just announced a new round of funding; $300 million from Salesforce Ventures, pegging the company’s post-funding valuation at over three-billion dollars. Reason One: Software is Eating the World. Don’t participate.

Distribution 117

Distribution San Francisco Silicon Valley El Salvador 117

Steve Blank

MARCH 31, 2014

Today’s workforce has radically different expectations, brands are losing their power, physical channels are being destroyed by virtual ones, market share is less important than market creation, and software is eating world. Look at the valuations of companies like Tesla, Illumina, and Twitter.

Private Equity 325

Private Equity Metrics China Intellectual Property 325

Steve Blank

FEBRUARY 26, 2020

Series B is about proving your net revenue model (can you be profitable?). At the end of this post, we’ll discuss the valuation at each step (how much the investors value your company and therefore how much of it you need to give up to get this money) and how much revenue you should generate at each step.). Valuations.

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Cofounder Seed Stage Valuation Metrics 429

Reid Hoffman

JULY 27, 2021

When I decided I wanted to start a company, I realized that I needed to pick up certain skills first, like product management, knowledge of online services, and a practical understanding of commercial software development. The risk-averse argument is that a strong network is a safety net. Networks are both safety nets and trampolines.

Silicon Valley 69

Silicon Valley Venture Capital Balance Sheet Cofounder 69

Reid Hoffman

JULY 27, 2021

When I decided I wanted to start a company, I realized that I needed to pick up certain skills first, like product management, knowledge of online services, and a practical understanding of commercial software development. The risk-averse argument is that a strong network is a safety net. Networks are both safety nets and trampolines.

Silicon Valley 69

Silicon Valley Venture Capital Balance Sheet Cofounder 69

Agile VC

APRIL 17, 2011

Kayak Software Corporation. 2010 Net Income: $8 million. 3) ITA Relationship: Much has been made of the fact that Kayak along with OTAs (online travel agents) license data from ITA Software which is now part of Google. Post-money valuation probably no higher than $12M (2). Pre-money valuation was approx.

Pre-Money Valuation 113

Pre-Money Valuation Liquidation Preference Dividend Common Stock 113

David Teten

DECEMBER 3, 2019

The reports showcase raw data, analytics, visualizations, and benchmarking statistics on the company from dozens of sources, including team, intellectual property, technology, product, financial, banking, marketing, customer, risk, valuation, and investment information.”. If you have one, please contact me. 7) Negotiate .

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Technical Review Software Review Analytics Private Equity 78

Feld Thoughts

JANUARY 7, 2015

I know several people who have gone through the with great success and gone on to have excellent software development jobs. Many are immersive and include internships. A few are longer than 12 weeks. It’s a powerful model that university education has generally missed on. revenue several years later. I’d argue the 0.5x

Stock Options 70

Stock Options Cofounder Revenue Hosting 70

Austin Startup

OCTOBER 15, 2017

What seems to be the best way to create customers and revenue may result in a business model that is out of vogue with the investment world and shortchanges you on enterprise valuation. If you deliver exactly the same results at the same net cost to the customer via a SaaS product, you may get a tech multiple 10X higher.

Technical Review 48

Technical Review Software Review Nevada Silicon Valley 48

Version One Ventures

OCTOBER 15, 2020

Up until late August, Lightning Labs had capped the channel capacity and payment size for users of their popular implementation of the network to ~$2000 USD and ~$500 respectively to better protect user funds with experimental software. . NFTs are unique digital bearer assets which may include a variety of software-enabled rights.

Networking 168

Networking Global OTC Security 168

Ben's Blog

MARCH 24, 2011

As we do so, keep in mind that the relevant bubble statistic is not valuation. High valuations are fine if the underlying value is there. In the great bubble of 1998-2000, the boom in public valuations mirrored the boom in private valuations. If too much venture capital hits the streets, valuations will bubble up.

Technical Review 78

Technical Review Venture Capital Valuation Database 78

Up and Running

JULY 7, 2014

Today, Dyson has a net worth of over £3 billion. Not too long ago, Noah Parsons, the COO of Palo Alto Software, wrote about a restaurant business that had failed. Even though Palo Alto Software (PAS) shared the same building with them, the restaurant employees made no attempt to build any sort of rapport with the company.

Entrepreneur 142

Entrepreneur Software Review Cofounder Audience 142

Austin Startup

MAY 10, 2021

but then going public and rising 23% on day one to… drumroll please… a $36B valuation ?—?a The IPO netted $500M for UiPath (and another $700M for shareholders). Several smaller RPA firms have been acquired by bigger software vendors in the last year as well? a full 60x trailing twelve month revenues.

Silicon Valley 113

Silicon Valley IPO Venture Capital Valuation 113

crowdSPRING Blog

FEBRUARY 16, 2011

“The median net return to VC fund investors has not been positive for any vintage year since 1998″ – [link]. Seed Stage Valuation Guide – [link]. Remarkable valuation for Zynga – but their profits might actually justify it – [link]. Avoid Decision by Indecision – [link]. – [link].

Social Media 95

Social Media Small Business Design Media 95

Startup Professionals Musings

SEPTEMBER 30, 2011

Once you have a potential investor excited about your team, your product, and your company, the investor will inevitably ask “What is your company’s valuation?” How much is NewCo worth to investors at this point (pre-money valuation)? This is the most concrete valuation element, usually called the asset approach.

Pre-Money Valuation 246

Pre-Money Valuation Valuation NPV Intellectual Property 246

ConversionXL

JULY 16, 2021

Gumroad , a software that allows content creators to easily sell digital products, gets straight to the point with their unique selling proposition (USP) : They state exactly who their target audience is: creators. Too many brands try to cast a wide net. More on this later. Why is messaging a challenge?

Audience 127

Audience Framework Differentiation Software Review 127

crowdSPRING Blog

FEBRUARY 3, 2012

Legal Contracts for Software Developers Who Hate Contracts (w/free contract template tco use today) – [link]. An interesting drill-down into Apple’s valuation – [link]. Amazon Misses; Q4 Sales Up 35% To $17.4B; Net Income Down 58% To $177M – [link]. 94 Free Colorful Bokeh Textures – [link].

Social Media 92

Social Media Small Business Design Media 92

David Teten

MARCH 24, 2014

Addepar is precisely trying to collect and convert into software these best practices. (ff Chernick : However, net alpha is negative for asset allocators. However, it was the right thing to do from a valuation perspective. David Teten : I’ve been researching investment best practices for a long time, so I share your interest.

Software Review 114

Software Review Due Diligence Venture Capital Portfolio 114

Steve Blank

JUNE 22, 2011

Prices for both private and public tech valuations exceed any rational valuation to their current worth. While labeled the “dot.com” bubble, valuations went crazy across a wide range of technology sectors including telecommunications, enterprise software and biotech, not just the Internet. exist as bits.

Internet 295

Internet Silicon Valley United States .Net 295

Startup Professionals Musings

APRIL 3, 2012

But I have found that making the right choice at the right time can have a major impact on your long-term valuation, and the decision process is complex. Angels are typically high net-worth individuals, investing their own money, interested more in early or “seed” financing of amounts starting as low as $25K. The basics are simple.

IRR 248

IRR Term Sheet Startup Valuation 248

The Startup Magazine

MARCH 23, 2021

Just recently they raised another huge round of funding ( source ) and secured a 95 billion valuation. Kagi is one of the best choices for people selling software rather than digital goods. It is one of the most streamlined platforms for credit card payments. Authorize.net is another recognisable name in the business. Another bonus?

HTML 140

HTML Affiliate Valuation .Net 140

Cracking the Code

JANUARY 22, 2009

Thoughts from a Venture Capitalist on Software, Software-as-a-Service (SaaS), Cloud Computing, Internet and more. While it may make sense to offer very slight adjustments for favorable payment terms and one time revenue, net additions to MRR should dominate the sales rep’s thoughts. Cracking The Code. Lluis Faus @ vLex.

Software Review 91

Software Review Clawback Sales Salary 91

Agile VC

NOVEMBER 9, 2015

I’ll address potential valuation further down the post here. Unfortunately the fact that the company raised capital in private markets at a healthy valuation ($6B) and the uncertainty about having a CEO who’s attention is divided between two public companies obscures this story. Gross Margins / Net Revenue.

IPO 165

IPO .Net Revenue Acquisition 165

Rob Go

OCTOBER 14, 2012

We have investments in e-commerce, SMB SaaS, Business Software, AdTech, Payments, Enabling Platforms, Consumer Social, Gaming, and Education. Early Progress: Performance is a difficult thing to measure as a seed stage fund given the time horizons and the fickleness of private company valuations. Y-Combinator was probably half the size.

New Hampshire 50

New Hampshire Croatia Omaha Portfolio 50

Cracking the Code

JULY 6, 2007

Thoughts from a Venture Capitalist on Software, Software-as-a-Service (SaaS), Cloud Computing, Internet and more. I was surprised today when I went through the NetSuite IPO filling (S1) to see that it looked very much like any Enterprise software document - not a single mention of churn or % of recurring revenues. anecdotes. (13).

Software Review 66

Software Review Metrics Valuation Technical Review 66

techcrunch.com

FEBRUARY 19, 2010

According to VCs, there’s been a 65% decrease in up-rounds (where a company gets a bigger valuation) in the last six months and more than 60% of those polled expect a longer wait for an exit. And investors said they intend to invest more in cleantech than software going forward. A lot of the stats weren’t surprising.

Venture Capital 62

Venture Capital Technical Review Sweat Equity Valuation 62

Agile VC

AUGUST 9, 2012

But at some point the valuation of the company puts it squarely into “value” stock territory rather than the heady “momentum” stock multiples Zynga once enjoyed, not that long ago. The “value” case goes like this: A) Valuation Net of Cash – Zynga’s market cap sits at around $2.2-2.3B

Stock 160

Stock LBO .Net Valuation 160

www.paulgraham.com

OCTOBER 23, 2010

Youdnegotiate a round size and valuation with the lead, whod supplysome but not all of the money. Standardized paperwork will do away with the need tonegotiate anything except the valuation, and that will get easiertoo. Butthere may not have to be just one valuation. In the old days, the standard m.o. Indirectly, but they are.

Startup 93

Startup Valuation Non-Compete Deal Flow 93

Cracking the Code

OCTOBER 10, 2008

Thoughts from a Venture Capitalist on Software, Software-as-a-Service (SaaS), Cloud Computing, Internet and more. “Just say no” to on-premise deployments The most important part of Software-as-a-Service isn’t “Software” it’s “Service”! Cracking The Code. at 11:09 AM.

Software Review 48

Software Review North America Europe Metrics 48

Startup Professionals Musings

OCTOBER 19, 2010

Many of the large endowments that invest in the venture industry have seen their net worth plummet. These include chips, computers, software, telecom, and the Internet. Luckily, some VCs feel that the best time to invest is during a struggling market, when both valuations and competition are at an all time low.

Venture Capital 225

Venture Capital Silicon Valley Startup United States 225

ReadWriteStart

SEPTEMBER 9, 2019

If you’re doing really well, it becomes hard to take existing investors out at a reasonable valuation. McKee: We’re a payroll software company, but we spun out of a traditional payroll firm. We reached out to high-net-worth individuals and small funds. Once you bring in equity, you need to be comfortable with that path.

Venture Capital 105

Venture Capital Equity SBA Finance 105