Remove 1999 Remove Dilution Remove Early Stage Remove Naming
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Want to Know How VC’s Calculate Valuation Differently from Founders?

Both Sides of the Table

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. I told them that True Ventures had stuck to their brand name and submitted a totally clean term sheet. It was accept the terms or go into bankruptcy so we took the money. No gotchas. This is a shame.

Valuation 405
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How Many Investors are Too Many?

Both Sides of the Table

You may feel as I did in 1999 that the more smart people around the table the more intros you’ll have, the more sage advice you’ll receive and the more impressive you’ll seem to outsiders. So in order to get a two-handed deal you need to dilute by 40% which is an awful lot at the start of your company.

Dilution 314
Insiders

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On the Road to Recap:

abovethecrowd.com

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. Never in the history of venture capital have early stage startups had access to so much capital. It will also minimize future dilution. ” Go public.

IPO 40
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Does Elon Musk + Peter Thiel = 3 or 1.5

Professor VC

Musk was the early winner taking the CEO role (for a brief period) in the merged company and the largest equity stake as well. Not surprisingly, the merger was highly dilutive, particularly to Confinity/PayPal shareholders. I was a Limited Partner in Angel Investors II (Ron Conway's angel fund) that was an investor in Confinity.

Merger 28
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On Going Public: SPACs, Direct Listings, Public Offerings, and Access to Private Markets

Ben's Blog

Among the findings are: SPAC dilution amounts to roughly 50% of the cash ultimately delivered to the companies brought public. In fact, if you exclude the Dot Com Bubble of 1999-2000, they have been steady for nearly thirty years. 1999-2000 51.6% Time Period IPO Pop % Above IFR 1999-2000 51.6% 1999-2000 37.5%

SEC 36