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Want to Know How VC’s Calculate Valuation Differently from Founders?

Both Sides of the Table

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
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The Changing Venture Landscape

Both Sides of the Table

In 2001 companies IPO’d very quickly if they were working, by 2011 IPOs had slowed down to the point that in 2013 Aileen Lee of Cowboy Ventures astutely called billion-dollar outcomes “unicorns.” They might be ideas they hatch internally (via a Foundry) or a founder who just left SpaceX and raises money to search for an idea.

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On Bubbles … And Why We’ll Be Just Fine

Both Sides of the Table

I recently spoke at the Founder Showcase at the request of Adeo Ressi. I said that at the Founder Showcase, too. 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. some founders lose their life savings.

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The Great VC Ice Age is Thawing (for now) – Part 1 of 3

Both Sides of the Table

Just ask anybody who was trying to close funding the fateful week of September 11, 2001 or even March 2000. No doubt they spent countless hours arguing for reduced burn rates sometimes with founders, sometimes with investors. It is no wonder why they had less time for new deals.

Burn Rate 263
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Valuations 101: Scorecard Valuation Methodology

Gust

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. In most regions, the pre-money valuation does not vary significantly from one business sector to another.

Valuation 146
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Is the Unicorn Endangered or Extinct?

Professor VC

It''s previous financing round was a little over a year prior to the IPO and was a $8M raise at a $60M pre-money valuation led by John Doerr of Kleiner Perkins. Those that managed companies in 2008 or thirteen years ago in 2001 know exactly how fear feels. or a market cap of $800M. And this is not it."

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Time is the Enemy of All Deals

Both Sides of the Table

million at a $15 million pre-money valuation. We had people hearing through the grapevine that we were about to raise money and new investors started calling us to get in on the deal. My co-founder and other management team members wanted us to hold off and see whether we could get the deal done at a higher price.