Remove 2006 Remove Entrepreneur Remove Hiring Remove Pre-Money Valuation
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Want to Know How VC’s Calculate Valuation Differently from Founders?

Both Sides of the Table

And for some strange reason entrepreneurs didn’t share this information. Other founders, “as a privately held company we don’t disclose our valuation.&# Me, “dude, I’m not a journalist. I’ve started from day one trying to build total transparency into my process with entrepreneurs.

Valuation 405
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On Bubbles … And Why We’ll Be Just Fine

Both Sides of the Table

This was an audience of mostly first-time entrepreneurs. It is great for entrepreneurs and great for VCs. So here is what I have been telling entrepreneurs privately for the past 6 months. All of that might be true, but the 2006 price might still be over-valued. What a bubble means for each entrepreneur.

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Lean Startup Conference Speaker Andy Rachleff on his 35 years in Silicon Valley, Wealthfront and telling stories

Startup Lessons Learned

So the venture process was all about trying to figure out whether or not people could deliver what they said they could, and you typically invested as early as possible at a $5 million pre-money valuation, hoping the company would be worth $500 million, in which case you'd make 20 to 30 times your money. Most hedge.

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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. The cap is irrelevant if the next equity financing is at a valuation below the cap amount.) was spun out, and the valuation was set by that financing round.

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Why the New Seed Might Be a Bad Seed

This is going to be BIG.

So whereas seed rounds five years ago may have been less than a million dollars on a pre-money valuation of three or four million, today''s seed is up and over a million and usually closer to two million, with post money valuations nearing $10 million. If you''re worried about the runway, try doing less things.