Both Sides of the Table

JULY 22, 2010

When I went to raise money in 2006 I thought I knew every term in a term sheet but somehow I still got a bit duped by the option pool shuffle. How VC’s Calculate Valuation : We walked through a standard deal where you raise $1 million at a $3 million pre-money valuation leading to a $4 million post money valuation.

Valuation 405

Valuation Liquidation Preference Pre-Money Valuation Term Sheet 405

Agile VC

APRIL 17, 2011

Pre-money valuation was initially set higher but was adjusted to match the Ser B valuation. Pre-money valuation was approx. extension round closed April 2006. extension round closed April 2006. round closed May 2006. Pre-money valuation was approx.

Pre-Money Valuation 113

Pre-Money Valuation Liquidation Preference Dividend Common Stock 113

Both Sides of the Table

JUNE 22, 2011

It’s like people arguing that there’s a beautiful beach house in 2006 that represents great long-term value due to scarcity of similar property. All of that might be true, but the 2006 price might still be over-valued. That doesn’t mean it’s not a bubble. Trust me, we’re all hurt when bubbles burst.

Saudi Arabia 309

Saudi Arabia Valuation IPO Technical Review 309

Both Sides of the Table

SEPTEMBER 29, 2009

They should heed the age old advice that raising slightly more money while you can is always better than trying to optimize future valuations. This should not be confused with raising too much money as many companies did in 2006-08. But imagine a VC that did 12 deals per year in 2006, 2007 & 2008.

Burn Rate 263

Burn Rate Valuation Pre-Money Valuation Private Equity 263

David Teten

SEPTEMBER 16, 2014

Villalobos & Payne: “Startup Pre-Money Valuation: The Keystone to Return on Investment” 117. Sohl: “The Angel Investor Market in 2008: A Down Year in Investment Dollars But Not in Deals” Unknown. Sohl: “The Angel Investor Market in 2007: Mixed Signs of Growth” Unknown. approx 1999-07.

Angel Investor 114

Angel Investor Technical Review Venture Capital New Hampshire 114

Lightspeed Venture Partners

SEPTEMBER 21, 2013

Despite having over 500k downloads and making $450k in revenue over the last 21 months, he had only $185k left in the bank, which meant that he would be out of business in 90 days if he didn’t raise more money. pre money valuation and planned to use the money to market the app. pre money valuation).

Pre-Money Valuation 162

Pre-Money Valuation Valuation Dilution Distribution 162

Gust

OCTOBER 20, 2011

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

Valuation Pre-Money Valuation Intellectual Property Technical Review 146