VC Adventure

AUGUST 15, 2018

However the board could determine what that fair market value was and, generally speaking, there wasn’t a practical way that these valuations could be challenged. Over night a cottage industry was created to conduct these valuations. So what should this discount be? I was wrong.

Valuation 48

Valuation Common Stock Cap Table Software Review 48

SoCal CTO

JUNE 9, 2010

Unexpected Startup Lesson #1: Quitting the day job - Currently Obsessed , May 10, 2010 This post is the first of a series on “unexpected lessons&# learned through my experience as co-founder and CEO of Snapvine , a venture-backed mobile social networking service founded in 2005 and acquired by WhitePages in June of 2008.

Fractional CTO 248

Fractional CTO Startup Venture Capital Cofounder 248

Agile VC

APRIL 17, 2011

Post-money valuation probably no higher than $12M (2). Pre-money valuation was initially set higher but was adjusted to match the Ser B valuation. round closed Feb 2005. Pre-money valuation was approx. Pre-money valuation was approx. Pre-money valuation was at least $250M (2). Series A-1 Preferred.

Pre-Money Valuation 113

Pre-Money Valuation Liquidation Preference Dividend Common Stock 113

Steve Blank

FEBRUARY 26, 2020

What was a Series A round in 2005 is now a pre-seed or seed round. At the end of this post, we’ll discuss the valuation at each step (how much the investors value your company and therefore how much of it you need to give up to get this money) and how much revenue you should generate at each step.). Valuations.

Cofounder 429

Cofounder Seed Stage Valuation Metrics 429

VC Cafe

SEPTEMBER 15, 2020

I’ve always been a fan of startup resources lists and had a dedicated page on VC Cafe since the blog’s inception in 2005. While some things change slowly, maintaining the list current proved tricky as time went by. Sales, Marketing and customer success. Venture capital.

Venture Capital 131

Venture Capital Incubator Database eCommerce 131

Version One Ventures

AUGUST 7, 2019

While we adjust valuation on a quarterly basis, I took the June 30 values for each year (since June 30 2019 is the latest data we have). The company released its first product in 2005, but it was only until a few years ago that customers really caught on and the company’s valuation went through the roof. Portfolio co’ 3.

Valuation 137

Valuation Cofounder Portfolio Founder 137

Both Sides of the Table

AUGUST 9, 2011

Valuations were enormous relative to progress in companies. Companies with less than $2 million in revenue were asking for $50-60 million valuations and getting them. I spent my days meeting companies, figuring out what areas of the market interested me and trying to get a sense for how VCs thought about fair valuations.

Stock 305

Stock Technical Review Marketing Greece 305

Berkonomics

NOVEMBER 4, 2016

So how do you use financial projections as valuation metrics when you know the odds of those being accurate predictors of the future are so very unreliable? million), but certainly also allowing the investor to put much lower values into each test, resulting in valuations well below that amount. The Method should allow for this.

Valuation 48

Valuation North Carolina Oklahoma City Silicon Valley 48

YoungUpstarts

OCTOBER 23, 2017

PC and mobile interfaces dynamically display portfolio valuations and exposures, along with system-generated investment recommendations tailored to a specific client’s financial goals and risk appetite. Today employment in the sector is comparable to levels from 2005-2006 when revenues were also similar.

Technical Review 154

Technical Review Artificial Inteligence Software Review IPO 154

Gust

NOVEMBER 4, 2011

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. by February 2006).

Valuation 98

Valuation Pre-Money Valuation Merger Vesting 98

Both Sides of the Table

APRIL 20, 2011

Josh and Howard began co-investing as angels and in 2005 they started a $10 million fund. Twitter wanted to raise money for this new venture at a pre-money valuation which was quite a bit higher than First Round’s $10 million limit. Prior to First Round Capital, Howard had invested in two of Josh’s companies Infonautics Corp.

Pre-Money Valuation 284

Pre-Money Valuation Technical Review Cofounder Cram Down 284

Agile VC

MAY 26, 2011

The terms and valuation for both offers were comparable and when the team debated which path to choose, we all agreed both firms would have made good partners. round which closed in November 2003, and the pre-money valuation between $10 million and $15 million. It was a pretty good valuation for the time. It was a $4.7M

Term Sheet 178

Term Sheet Silicon Valley Technical Review Social Network 178

Both Sides of the Table

MAY 23, 2012

Yes, it’s true that FOMO (fear of missing out) is driving some irrational behavior and valuations amongst uber competitive deals and well-financed VCs. LP contributions to VC firms shrunk from 2000 and by 2005-2008 had stabilized to around $30 billion per year. Money flowing into our industry has also massively downsized.

Venture Capital 347

Venture Capital Technical Review LP Mobile 347

Altgate

DECEMBER 16, 2010

@altgate Startups, Venture Capital & Everything In Between Skip to content Home Furqan Nazeeri (fn@altgate.com) ← Pre-Money Valuation vs Number of Founders Where Do Tech VCs Invest? But first, let’s look at pre-money valuation by liquidation preference. and 2X had an average pre-money valuation of $8.6

Liquidation Preference 39

Liquidation Preference Pre-Money Valuation Term Sheet Valuation 39

Both Sides of the Table

JUNE 28, 2011

The trend of funding anything from the first $25k to funding $50 million at a billion+ valuation is unlikely to last as the skills and style to be effective at all stages are diverse enough to warrant focus. These two trends had a major impact on the computing industry from 2000-2005 but the effects weren’t yet felt by the VC industry.

Venture Capital 334

Venture Capital Software PHP Open Source 334

Both Sides of the Table

MARCH 6, 2015

Let me take you back just 10 years ago to 2005 in Silicon Valley where I returned after 11 years of living in Europe. But back in 2005 there were a few people who spotted the trend before others and one of the true pioneers was (and continues to be) Jeff Clavier who founded SoftTech VC. It is, of course, a very recent phenomenon.

Seed Stage 150

Seed Stage Silicon Valley Syndicate Syndication 150

www.currentlyobsessed.com

MAY 28, 2010

Valuation is an important aspect of VC deal terms, and a major determinant of your ultimate outcome. I unexpectedly found that it was more helpful to think about the company valuation as an output variable in the fund-raising equation. The net effect was more money raised, higher valuation and the same percentage of equity sold.

Valuation 42

Valuation Channel Pre-Money Valuation Term Sheet 42

www.businessinsider.com

SEPTEMBER 6, 2012

This Chart Shows Why VCs Are Willing To Give Hyped Startups Absurd Valuations. If the convertible debt has a " valuation cap " feature, the price at which the investors debt converts into shares has a maximum. The whole point is to provide a fast, easy form of financing that avoids wrestling over valuation.

Silicon Valley 54

Silicon Valley Startup Valuation Venture Capital 54

500hats.com

AUGUST 2, 2012

A few years before all this scandalous VC behavior occurred, in 2005 Paul Graham ) started Y Combinator. YC now runs 2 programs per year, with over 80 companies in the current batch, and is highly respected both by VCs and entrepreneurs all over the world (and their valuations reflect that as well). (and no, we didn’t.

Silicon Valley 74

Silicon Valley Early Stage Venture Capital Valuation 74

Both Sides of the Table

SEPTEMBER 28, 2013

We funded one in 2005 and lost a lot of money. Dilution / valuation. I hate when companies publish too much information about the total stock option allocations, the company valuations, the dilution faced in every round, etc. Call me when you’re ready to leave.” “Dude, we saw a bunch of those last year.

Startup 417

Startup Dilution San Diego Stock Options 417

Feld Thoughts

FEBRUARY 9, 2016

I learned this lesson 127 times between 2000 and 2005. I started investing in 1994 and while there was some bumpiness in 1997 and again in 1999, the real pain happened between 2000 and 2005. But, as you raise more money at higher valuations, this will normalize.

Cap Table 70

Cap Table Down Round Liquidation Preference Founder 70

Feld Thoughts

DECEMBER 28, 2010

On the heels of all the noise around Groupon’s $ 100m financing at a $7.5b (billion) post valuation, I thought I’d put out a call for “old VC term sheets – prior to 1990.&#. The basis for the book comes from the Term Sheet series that Jason and I wrote on this blog in 2005.

Term Sheet 118

Term Sheet Search Finance Valuation 118

Startup Lessons Learned

JUNE 19, 2019

In 2005, he retired to focus on giving back, beginning by teaching technology entrepreneurship courses at Stanford, becoming a trustee at the University of Pennsylvania (which he attended undergrad), and funding cancer research with his wife. We'll invest at a $50 million valuation. It's a horrible risk/reward.

Silicon Valley 159

Silicon Valley Lean Venture Capital Pre-Money Valuation 159

Altgate

DECEMBER 12, 2008

→ A Squeeze On Boston Venture Valuations Posted on December 12, 2008 by fnazeeri Today there was a front page story in the Boston Business Journal about how the market’s downturn is putting a squeeze on local venture valuations.

Boston 28

Boston Valuation Venture Capital Startup 28

VC Adventure

JUNE 15, 2011

But what’s going on right now with early stage company valuations suggests that VCs may be poor judges of at least some of these patterns. In reality, since Facebook’s first venture round in 2005 over 10,000 different businesses have received venture funding. Or so the logic goes.

DC 92

DC Valuation Early Stage Washington 92

VC Cafe

OCTOBER 26, 2010

P rimeSense , the Israeli technology company behind Microsoft Kinect’s magic, has raised a $50 million round from French investment bank Lazard Group, based on a valuation of 300 million USD, reports TheMarker (Hebrew). PrimeSense was founded in 2005 by Aviad Meizlos, Ofir Sharon, Dmitri Reiss, Alex Shpunt and Tamir Berliner.

Private Equity 111

Private Equity Dilution Valuation Differentiation 111

Both Sides of the Table

SEPTEMBER 17, 2017

I believe the massive valuation increases in cryptocurrencies we’ve witnessed of late are not based on any fundamentals other than speculation and a drive for a quick profit by many who have gained from the market hype. Many of these countries hadn’t been big stock speculators but the gains of the US Internet companies were too tempting.

Government 280

Government Distribution Stock United States 280

www.paulgraham.com

APRIL 28, 2010

November 2005 Venture funding works like gears. Another concept we need to introduce now is valuation. I say "in theory" because in early stageinvesting, valuations are voodoo. As a company gets more established,its valuation gets closer to an actual market value. Startups valuations aresupposed to rise over time.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

www.paulgraham.com

OCTOBER 23, 2010

If you get an offer from a reputablefirm at a reasonable valuation with no unusually onerous terms,just take it and get on with building the company. [ In the first batch of startups we funded, in the summerof 2005, most of the founders spent all their time building theirapplications. Economically, startupsare an all-or-nothing game.

Startup 108

Startup Software Review Hiring Detroit 108

Both Sides of the Table

APRIL 14, 2010

Many companies that are raising B or C venture capital rounds right now raised their initial money in 2005-2008. Talk openly about valuation and what they’ll accept so you know what you’re dealing with. If you want to raise venture capital more easily the advice could be quite practical and counter-intuitive. It is 2010.

Venture Capital 289

Venture Capital Liquidation Preference Common Stock Dividend 289

mashable.com

MARCH 7, 2011

Partners W3 EDGE Concentric Sky Rackspace Intridea Dynect DNS Webtrends Global Syndication Partners ABCNews Forbes Metro USAToday Yahoo ©2005-2011 Mashable, Inc. Reproduction without explicit permission is prohibited. All Rights Reserved. startupcto

Developer 93

Developer HTML API Ruby 93

Both Sides of the Table

SEPTEMBER 14, 2010

But knowing the right people and knowing a market only works well for angel investors in bullish tech markets in which IPO’s happen quickly (97-99) or where larger companies are actively scooping up little tiny companies at sub $50 million valuations to drive innovation (05-08, 10-?). Let’s call these cards 1996-99 and 2005-08.

Angel Investor 152

Angel Investor Cap Table Early Stage Deal Flow 152

A Smart Bear: Startups and Marketing for Geeks

OCTOBER 23, 2012

And the same thing happened after we sold IT WatchDogs in 2005. So it IPO’ed at a $13b valuation but has dropped month-over-month to one-fourth that value and appears to be in “constant pivot mode” while they try to figure out a new, massive market for which their existing infrastructure is an asset.

IPO 240

IPO Flash Bootstrapping Private Equity 240

The Next Web

SEPTEMBER 24, 2013

I went to university in Waterloo in 2005 for engineering. Both Spark and RRE agreed to split the round, but at the slightly lower figure of $8 million and with a lower valuation for Kik. It wasn’t until four months later when Spark Capital returned to the table, with Union Square Ventures, that a final deal was agreed.

Entrepreneur 167

Entrepreneur CTO Hire Startup Mobile 167

Cracking the Code

MARCH 23, 2007

The following chart compare the impact of the tsunami in 2005 on the website traffic vs. the viral marketing campaign that they launched in 2007 with Popular Media. Detailed SaaS Spreadsheet (Valuation and CAC benchmark). SaaS 13 Index Valuation. UNICEF USA used their solution and the results have been fantastic. My Investments.

Software Review 48

Software Review Viral Media Marketing 48

Growthink Blog

FEBRUARY 20, 2012

The reasons for this go beyond the obvious one of rarity - Facebook being the biggest business story of the new century, and correspondingly having one of the steepest valuation growth trajectories of all time. Well, the painful answer is that for almost everyone - it just isn’t going to happen. Let's start with being too poor.

Silicon Valley 78

Silicon Valley Private Equity Early Stage Equity 78

Duct Tape Marketing

APRIL 28, 2011

Multipliers for the brand Valuation experts rely on certain data, such as revenue, profit and market conditions to attempt to assign a value to business being bought or sold. The deal ends this Saturday April 30. Note: There have been some updates since I published th. 5 Practical Tips for Gett. : 5 Steps to Successful Fac.

Marketing 65

Marketing Valuation Differentiation Lead Generation 65