Both Sides of the Table

JULY 29, 2010

We received so much positive feedback from our This Week in Venture Capital show walking through valuation calculations & term sheets that we decided to do a Q&A show this week to address topics that entrepreneurs want to learn about. The best thing to get is a “right sized&# valuation. A: It’s not best.

Venture Capital 282

Venture Capital Term Sheet Valuation Stock Options 282

Both Sides of the Table

SEPTEMBER 18, 2014

You’ll find out the minimum when the next round is raised. Me: There is no rational explanation for valuations of A round companies by ANY objective financial measure. Less than you’ll probably grant your most junior employees in stock options? People seem concerned about valuation. A down round?

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Ben's Blog

JULY 16, 2013

You probably thought that valuations would be roughly the same as they were the last time you raised money. 3/30/2001: 26.3. And those are big companies with real earnings, so you can imagine how a private company’s valuation might fluctuate. In June of 2000, I raised money at an $820M post-money valuation. Things change.

Down Round 78

Down Round Marketing Preferred Stock Post-Money Valuation 78

Gust

SEPTEMBER 17, 2014

You’ll find out the minimum when the next round is raised. Me: Raising convertible notes as a seed round is one of the biggest disservices our industry has done to entrepreneurs since 2001-2003 when there were “full ratchets” and “multiple liquidation preferences” – the most hostile terms anybody found in term sheets 10 years ago.

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

Feld Thoughts

APRIL 21, 2016

Also, they have a strong belief that any sign of weakness (such as a down round) will have a catastrophic impact on their culture, hiring process, and ability to retain employees. Their own ego is also a factor – will a down round signal weakness? Long term is not a year. It’s not two years.

Marketing 70

Marketing Down Round Startup IRR 70

thebarefootvc

AUGUST 26, 2015

The third requirement to be a successful VC is finding resilient teams that are building companies and product that can stand up to external shocks such as recessions (in addition to “internal” shocks such as employee turnover, product delays, etc). Pay attention to who you’re taking money from and aim for a reasonable valuation.

Marketing 40

Marketing Investment Bankers Valuation China 40

thebarefootvc

AUGUST 26, 2015

The third requirement to be a successful VC is finding resilient teams that are building companies and product that can stand up to external shocks such as recessions (in addition to “internal” shocks such as employee turnover, product delays, etc). Pay attention to who you’re taking money from and aim for a reasonable valuation.

Marketing 40

Marketing Investment Bankers Valuation China 40