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Kindred Spirits – Our Investment In Founder Collective

Feld Thoughts

In general, these investments were rarely competitive at the time of their first financing. We know many firms that build portfolios with great logos by buying into companies at later stages and higher valuations. FC’s portfolio is made up exclusively of seed stage investments at seed valuations.

Founder 75
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Age of companies when they achieve $1bn valuations

The Equity Kicker

It seems to me there are two obvious explanations for the dramatic reduction in the time it takes for companies to achive $1bn valuations: The pace of change is increasing allowing new companies to develop and mature faster. That said, I think that froth in the late stage financing market has contributed in the last couple of years.

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Early Stage VCs – Be Careful Out There

Feld Thoughts

“Historically, the $10 million valuation mark has been somewhat of a ceiling for seed stage startups. I remember when, in a period of about six months, the ceiling on seed financings vanished. Suddenly every company was raising a seed financing of at least $5m, regardless of the experience of the team.

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Why Do Consumer IPOs and B2B IPOs Get Treated Differently?

View from Seed

In the last decade or so, high profile consumer IPOs have often gotten lofty valuations. Google was a one such company when they went public in 2004 and Facebook was too at their 2012 IPO. I don’t follow the Chinese startup market as closely as I follow the US, but Alibaba’s 2014 IPO was a similar watershed moment.

IPO 180
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Can You Trust Any vc's Under 40?

Steve Blank

Underwriters realized that as long as the public was happy snapping up shares, they could make huge profits on the inflated valuations (regardless of whether or not the company should have ever been public.) The valuations for acquisitions were nothing like the Internet bubble, but there was a path to liquidity, difficult as it was.

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Keep It Under Your Hat: Valuation Caps and the $650 Million Sale of MySpace for $125 Million

Gust

Entrepreneurs and investors who have spent any time dealing with convertible debt seed financing transactions are likely to have encountered the subject of valuation caps. Valuation caps can come into play in settings other than seed-stage convertible note financing rounds. Read on for a fuller explanation.

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The Stock Dive: How I Learned to Stop Worrying and Love the Market

This is going to be BIG.

For these companies, the next round might not be at the valuation they wanted, but it’s still going to be there—because despite what you hear about pullbacks, there is still far more money chasing far rarer good ideas. It was super hard to get any kind of financing before, and it will remain so. The incentive is too strong.

Stock 97