Both Sides of the Table

JUNE 5, 2011

Early-stage investors in technology startups are only looking for growth-oriented companies that can achieve an “exit&# someday – either via selling your company to a larger company or via an IPO. while acknowledging that San Fran deals are often higher valuations due to increased competition amongst investors.

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336

David Teten

SEPTEMBER 16, 2014

Angel investors are generally former entrepreneurs and/or executives, who invest in privately-held, early-stage companies. Villalobos & Payne: “Startup Pre-Money Valuation: The Keystone to Return on Investment” 117. Angels are likely to lose some or all of their money on any given investment.

Angel Investor 114

Angel Investor Technical Review Venture Capital Pre-Money Valuation 114

Both Sides of the Table

JULY 27, 2014

I believe the middle isn’t being “gutted” but rather is being supplemented by “opportunity funds” and “growth funds” that sit side-by-side “core funds” allowing the firms to stay small and nimble while still being able to grab prorata rights of their best early-stage investments.

Valuation 309

Valuation Pre-Money Valuation Non-Compete Later Stage 309

Agile VC

MAY 26, 2011

Silicon Valley is still emerging from the tech bubble and massive downturn of late 2000-2002. round which closed in November 2003, and the pre-money valuation between $10 million and $15 million. You can sometimes attract capital from farther away but typically harder to do at early stage. It was a $4.7M

Term Sheet 178

Term Sheet Silicon Valley Technical Review Social Network 178

Both Sides of the Table

FEBRUARY 17, 2011

million and you’re an early stage business this is probably a fair deal. You’re offered a $9 million pre-money to raise $3 million (e.g. 5 million raised at a $9 million pre-money valuation or 35.7% What might future markets hold in terms of valuations? 25% dilution).

Pre-Money Valuation 303

Pre-Money Valuation Dilution Valuation PR 303

Both Sides of the Table

FEBRUARY 25, 2010

million at a $15 million pre-money valuation. We had people hearing through the grapevine that we were about to raise money and new investors started calling us to get in on the deal. We moved into the legal process and final due diligence in January and February of 2000. We ended up agreeing a term sheet for $16.5

Technical Review 301

Technical Review Term Sheet Due Diligence Venture Capital 301

David Teten

NOVEMBER 15, 2013

I have frequently heard the expression from other investors, “We can put a lot of money to work here.” This is the psychology that drives VCs to load up a company with more capital, rationalizing that $5m at a $20m pre-money valuation is little different than $10m at a $40m pre-money valuation.

Management 114

Management Pre-Money Valuation Venture Capital Valuation 114