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2010 VC Funding Outlook for Startups – Prepare for Winter (Part 3/3)

Both Sides of the Table

In the first post in this three part series I described why I believe the VC market froze between September 2008 – April 2009. We spent our future since the equity was artificial. It affects even B2B companies because ultimately most must sell to companies who sell to consumers and if they suffer they cut back on suppliers.

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Pre-Money Valuation vs Number of Founders | @altgate

Altgate

This chart shows that adding additional founders to the team is in fact dilutive, but also that the more founders the more dilutive. Is the dilution of co-founders counterbalanced by other factors? Again, anecdotal though. So, I’m curious. What is your take? Is it worth it or not? Bookmark the permalink.

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

Both Sides of the Table

This came in part due to the huge influx of money into VC but also because hedge funds and private equity shops with no VC experience wanted part of the action. Bu when you start to worry that the world is ending (as it seemed it was in late 2008 / early 2009) you tend to get worried about large burn rates.

Burn Rate 263
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State of VC 2.0

View from Seed

Seed investors are being compensated for the risk because later-stage investors are paying higher prices, and diluting early-stage investors less. At that time, the market had enjoyed a decent recovery from the economic crisis of 2008, but hadn’t quite fully recovered to its highs in 2007. The median VC fund generated about 2.3x

Valuation 319
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Strategy Roundtable: Open Opportunities in Cloud Computing and Rural BPO

ReadWriteStart

Whether it is credit or equity, funding is very, very tight. You can get cash without diluting your ownership in the company. Because customer financing equals revenue, not equity. I started doing my free Online Strategy Roundtables for entrepreneurs in the fall of 2008. This is important, so please listen up.

Cloud 115
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State of VC 2.0

View from Seed

Seed investors are being compensated for the risk because later-stage investors are paying higher prices, and diluting early-stage investors less. At that time, the market had enjoyed a decent recovery from the economic crisis of 2008, but hadn’t quite fully recovered to its highs in 2007. The median VC fund generated about 2.3x

Valuation 295
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How do the sample Series Seed financing documents differ from typical Series A financing documents?

Startup Company Lawyer

After the recent announcement of the Series Seed Financing documents by Marc Andreesen, Brad Feld points out that there are now four sets of “open source&# equity seed financing documents: TechStars Model Seed Funding Documents (by Cooley). Y Combinator Series AA Equity Financing Documents (by WSGR). under $500K).

Finance 70