Both Sides of the Table

JULY 29, 2010

The A round was done in February 2000 (end of the bull market) and my B round was done in April 2001 (bear market). People buy companies for 3 primary reasons: 1) they want the management team / talent 2) they want the technology or 3) they want the market traction (revenue, customer base, profits, etc). Do it early.

Venture Capital 282

Venture Capital Term Sheet Valuation Stock Options 282

Ben's Blog

JULY 16, 2013

Perhaps you are caught in the “Series A crunch” or perhaps you are a consumer company and expected that you would be valued on users rather than revenue like the last time. 3/30/2001: 26.3. They might have said something ridiculous like: “Based on the current price of the preferred stock, your offer is already worth $5M.”

Down Round 78

Down Round Marketing Preferred Stock Post-Money Valuation 78

Ben's Blog

JULY 16, 2013

Perhaps you are caught in the “Series A crunch” or perhaps you are a consumer company and expected that you would be valued on users rather than revenue like the last time. 3/30/2001: 26.3 They might have said something ridiculous like: “Based on the current price of the preferred stock, your offer is already worth $5M.”

Marketing 46

Marketing Preferred Stock Post-Money Valuation Down Round 46