Both Sides of the Table
JUNE 5, 2011
But to help with the explanation I’d like to put down some markers of typical Internet pre-money valuations done in major US markets (San Fran, NY, LA, etc.) while acknowledging that San Fran deals are often higher valuations due to increased competition amongst investors. It was early 2000. That was market.
Both Sides of the Table
APRIL 20, 2011
Infonautics went public in 1996 and Half.com was sold to eBay in 2000. Twitter wanted to raise money for this new venture at a pre-money valuation which was quite a bit higher than First Round’s $10 million limit. First Round Capital’s pre-money range is usually between $3-5 million. and Half.com.
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David Teten
SEPTEMBER 16, 2014
Villalobos & Payne: “Startup Pre-Money Valuation: The Keystone to Return on Investment” 117. Sohl: “The Angel Investor Market in 2009: Holding Steady but Changes in Seed and Startup Investments”. approx 2004-09. DeGennaro & Dwyer: “Expected Returns to Angel Investors” 603. approx 1999-07.
Both Sides of the Table
JUNE 22, 2011
I know that most people who are close to them tend to deny their existence, as we saw in the great housing bubble of 2002-2007 and the dot com bubble of 1997-2000. In addition to FOMO it is partly driven by massive increase in valuations for earlier-stage companies who raised money at bit seed prices but who still have product risk.
Both Sides of the Table
SEPTEMBER 29, 2009
Just ask anybody who was trying to close funding the fateful week of September 11, 2001 or even March 2000. The pricing problem – So an investor put $5 million at a $10 million pre-money valuation in a company with a great beta product but no real customers. It is no wonder why they had less time for new deals.
Both Sides of the Table
JULY 27, 2014
(not in video but late stage valuations have grown 24% compounded years for the past 4 years which is higher than any segment. Four years ago people paid $66m median pre-money valuation and are now paying $155m. This can’t all be driven by increased company performance).
Both Sides of the Table
FEBRUARY 17, 2011
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% dilution), I would personally probably avoid the extra money because as an entrepreneur the dilution would put me out of my confort zone. 25% dilution).
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