Both Sides of the Table
JULY 22, 2010
Due to competitive markets we ended up with a pretty good term sheet until we needed to raise money in April 2001 and then we got completely screwed. Other founders, “as a privately held company we don’t disclose our valuation.&# Me, “dude, I’m not a journalist. Those were the dog days of entrepreneurship.
Both Sides of the Table
SEPTEMBER 10, 2021
I’m over-paying for every check I write into the VC ecosystem and valuations are being pushed up to absurd levels and many of these valuations and companies won’t hold in the long term. On the one hand, you’re over paying for every investment and valuations aren’t rational. That never would have happened 10 years ago.
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Berkonomics
MARCH 25, 2012
For those of us who’ve invested in early stage companies, especially technology startups, we have confronted a universal problem. Note that these numbers are maximums that can be “earned” to form a valuation, allowing for a pre-revenue valuation of up to $2 million (or a post rollout value of up to $2.5
Berkonomics
NOVEMBER 4, 2016
Originally created in the mid 1990’s to help with the imprecise problem of how to value early stage companies, especially those in technology, I developed what soon became known as “The Berkus Method” when published in the popular book, “Winning Angels” by Harvard’s Amis and Stevenson with my permission in 2001.
Both Sides of the Table
SEPTEMBER 18, 2014
At an accelerator … 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. Him: $12 pre.
Austin Startup
JUNE 27, 2017
Valuations in startups increased dramatically during the Dot Com boom and then both valuations and the availability of investment capital nationally collapsed in 2001 with the Dot Com bust and 9/11. But the timing of the launch of these new funds almost assured their failure regardless of their investing acumen.
Gust
OCTOBER 20, 2011
In 2011, the valuation of pre-revenue, start-up companies is typically in the range of $1.5–$2.5 Scorecard Valuation Methodology. This method compares the target company to typical angel-funded startup ventures and adjusts the average valuation of recently funded companies in the region to establish a pre-money valuation of the target.
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