1999, Dilution, Distribution and Reputation

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1999

Dilution

Distribution

Reputation

Want to Know How VC’s Calculate Valuation Differently from Founders?

Both Sides of the Table

JULY 22, 2010

Back in 1999 when I first raised venture capital I had zero knowledge of what a fair term sheet looked like or how to value my company. The VC’s $1 million still buys them 25% of your company – it’s you who has diluted to 60% ownership rather than 75%. So your 100% of the company is down to 80% even before VC funding.

Valuation

Valuation Liquidation Preference Pre-Money Valuation Term Sheet

On the Road to Recap:

abovethecrowd.com

APRIL 20, 2016

In 1999, record valuations coexisted with record IPOs and shareholder liquidity. If 1999 was a wet (read liquid) bubble, 2015 was a particularly dry one. Back in 1999, if a company raised $30mm before an IPO, that was considered a large historic raise. It will also minimize future dilution. 2015 was the exact opposite.

IPO

IPO Term Sheet Silicon Valley Valuation

StartUpRoar

Want to Know How VC’s Calculate Valuation Differently from Founders?

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