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. It was accept the terms or go into bankruptcy so we took the money. I just want to figure out what a fair valuation is.&# I figured all the VC’s talked so we should.

Valuation 405

Valuation Liquidation Preference Pre-Money Valuation Term Sheet 405

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.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Ben's Blog

JULY 16, 2013

What about the efficient market hypothesis? Aren’t markets rational? If markets behave rationally, one might expect the ratio of price to earnings to be reasonably stable over the period (click here for complete data set). 3/30/2001: 26.3. In June of 2000, I raised money at an $820M post-money valuation.

Down Round 78

Down Round Marketing Preferred Stock Post-Money Valuation 78

View from Seed

JANUARY 11, 2017

It seems obvious but strategic investment only makes sense when that corporate VC is providing technology, market access, or other aid that cannot be obtained through a simple business relationship or from a startup’s other investors or advisors. We recently led a large seed round for an autonomous vehicle company called Optimus Ride.

Strategic Investors 120

Strategic Investors Post-Money Valuation Seed Stage Cofounder 120

Ben's Blog

JULY 16, 2013

What about the efficient market hypothesis? Aren’t markets rational? If markets behave rationally, one might expect the ratio of price to earnings to be reasonably stable over the period (click here for complete data set). 3/30/2001: 26.3 In June of 2000, I raised money at an $820M post-money valuation.

Marketing 46

Marketing Preferred Stock Post-Money Valuation Down Round 46

Gust

SEPTEMBER 17, 2014

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. You’ll find out the minimum when the next round is raised.

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

Professor VC

FEBRUARY 12, 2015

For example, Uber ( not a startup but someone should let TechCrunch know ) is private and has a valuation greater than 70% of the Fortune 500. Back in the day, tech companies typically went public at market caps in $100 - $250M range. or a market cap of $800M. Late private and early public investors were richly rewarded.

Las Vegas 28

Las Vegas IPO Pre-Money Valuation Valuation 28