David Teten

SEPTEMBER 16, 2014

Sohl: “The Angel Investor Market in 2008: A Down Year in Investment Dollars But Not in Deals” Unknown. Villalobos & Payne: “Startup Pre-Money Valuation: The Keystone to Return on Investment” 117. Sohl: “The Angel Investor Market in 2011: The Recovery Continues”. approx 2004-09. approx 1999-07.

Angel Investor 114

Angel Investor Technical Review Venture Capital Pre-Money Valuation 114

Both Sides of the Table

SEPTEMBER 29, 2009

The high burn rates were OK in investors’ minds when they figured they could just raise another round at a huge valuation and find a bigger sucker to fund the future large cash burn. 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

Burn Rate Valuation Pre-Money Valuation Private Equity 263

View from Seed

SEPTEMBER 14, 2021

Both early- and late-stage startup valuations are currently elevated. For context, seed-stage pre-money valuations are up 24% from H1 2020 to H1 2021. Early-stage valuations are up 70%, and late-stage valuations are up 103% (source Pitchbook ). The answer is likely a mix of both. during this time.

Valuation 319

Valuation Pre-Money Valuation Distribution Early Stage 319

View from Seed

SEPTEMBER 14, 2021

Both early- and late-stage startup valuations are currently elevated. For context, seed-stage pre-money valuations are up 24% from H1 2020 to H1 2021. Early-stage valuations are up 70%, and late-stage valuations are up 103% (source Pitchbook ). The answer is likely a mix of both. during this time.

Valuation 295

Valuation Pre-Money Valuation Distribution Early Stage 295

ReadWriteStart

OCTOBER 7, 2010

So at any point, if you are trying to raise money, and you are hearing from investors that you are too early and have too little validation, it may be a good thing. As a thumb rule, try to get enough validation so that you can get to at least a $2 million pre-money valuation before raising equity capital.

Valuation 119

Valuation Silicon Valley Pre-Money Valuation Bootstrapping 119

Jason Ball

SEPTEMBER 28, 2010

Don’t sweat the valuation too much. If this is your first start up, you’re not going to get a great multi-million dollar pre-money valuation, nor a lot of cash up front. In May 2008, Series B funding raised $15 million from Union Square Ventures, Bezos Expeditions.

Pre-Money Valuation 34

Pre-Money Valuation Valuation Dilution Venture Capital 34

Both Sides of the Table

FEBRUARY 17, 2011

You’re offered a $9 million pre-money to raise $3 million (e.g. 5 million raised at a $9 million pre-money valuation or 35.7% dilution), I would personally probably avoid the extra money because as an entrepreneur the dilution would put me out of my confort zone. 25% dilution).

Pre-Money Valuation 303

Pre-Money Valuation Dilution Valuation PR 303

View from Seed

SEPTEMBER 14, 2021

Both early- and late-stage startup valuations are currently elevated. For context, seed-stage pre-money valuations are up 24% from H1 2020 to H1 2021. Early-stage valuations are up 70%, and late-stage valuations are up 103% (source Pitchbook ). The answer is likely a mix of both. during this time.

Valuation 156

Valuation Pre-Money Valuation Distribution Early Stage 156

Altgate

OCTOBER 18, 2010

@altgate Startups, Venture Capital & Everything In Between Skip to content Home Furqan Nazeeri (fn@altgate.com) ← Startup Executive Compensation Scorecard Pre-Money Valuation vs Number of Founders → No one wants to tell you your baby is ugly Posted on October 18, 2010 by admin No one wants to tell you your baby is ugly.

Pre-Money Valuation 59

Pre-Money Valuation Venture Capital Valuation Lean 59

Professor VC

JANUARY 17, 2008

Thursday, January 17, 2008. The theme of the event was angel investment trends for 2008. Again, I see nothing wrong with this, although entrepreneurs often prefer convertible debt as it defers the valuation discussion and leaves the Series A price for the venture firm to set. ProfessorVC. The last blogger in Silicon Valley.

Pre-Money Valuation 28

Pre-Money Valuation Angel Investor Angel Groups Valuation 28

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

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. That means that they likely raised money at a particularly high price relative to 2010 prices. I looked up the funding details on Crunchbase and noticed that they closed a big round in March 2008 (e.g.

Venture Capital 289

Venture Capital Liquidation Preference Common Stock Dividend 289

Gust

NOVEMBER 4, 2011

In brief, a cap acts to place a limit on the conversion price of a convertible note such that investors are guaranteed a minimum number of shares for their bridge loans if the startup does a priced equity round at a high pre-money valuation – “high” meaning above the cap, which is often a heavily negotiated term. (The

Valuation 98

Valuation Pre-Money Valuation Merger Vesting 98

Professor VC

FEBRUARY 12, 2015

It''s previous financing round was a little over a year prior to the IPO and was a $8M raise at a $60M pre-money valuation led by John Doerr of Kleiner Perkins. Those that managed companies in 2008 or thirteen years ago in 2001 know exactly how fear feels. or a market cap of $800M. And this is not it." igthwghjg2q2g8hu4).

Las Vegas 28

Las Vegas IPO Pre-Money Valuation Valuation 28

Both Sides of the Table

SEPTEMBER 5, 2012

A standard entrepreneur retort I heard back then (2008-09) was “I don’t know what my company is worth now. As in, “your money into my company will convert at a 15-20% discount to the next round of capital I raise with a maximum price of $8 million pre-money valuation (or whatever the cap was).”

Ratchet 354

Ratchet Liquidation Preference Equity Stock 354

Both Sides of the Table

FEBRUARY 25, 2010

million at a $15 million pre-money valuation. We had people hearing through the grapevine that we were about to raise money and new investors started calling us to get in on the deal. Any deal – ANY DEAL – that was pre 9/11 was suddenly in question. History repeated itself in September 2008 with that market crash.

Technical Review 301

Technical Review Term Sheet Due Diligence Venture Capital 301

thestartuplawyer.com

FEBRUARY 24, 2010

The Startup Lawyer says: April 15, 2008 at 10:58 am [.] (1) Southlake Chamber of Commerce Publishes Article by Ryan Roberts | Ryan Roberts PC says: June 25, 2008 at 4:42 pm [.] Entrepreneur and Co-Founder Advice | The Startup Lawyer says: August 20, 2008 at 9:25 am [.] How Much are Legal Fees to Launch a Startup Company? |

Cofounder 40

Cofounder Founder Preferred Stock Startup 40

venturehacks.com

OCTOBER 21, 2010

If you don’t keep your eyes on the option pool while you’re negotiating valuation, your investors will have you playing (and losing) a game that we like to call: Option Pool Shuffle You have successfully negotiated a $2M investment on a $8M pre-money valuation by pitting the famous Blue Shirt Capital against Herd Mentality Management.

Option Pool 68

Option Pool Pre-Money Valuation Dilution Warrant 68

dondodge.typepad.com

JANUARY 15, 2011

So they will give you a pre-money valuation somewhere around the amount you raise. Sounds strange, but it usually works out that if you are raising $2M the VCs will value your company at $2M pre-money, and $4M post money so they end up with 50% of the stock. I'll be thinking this one over tonight.

Equity 40

Equity Employee Dilution Valuation 40

Altgate

MAY 24, 2012

To estimate how much the founders and other insiders owned after each of the startup’s first three rounds of financing, we used the two major factors that affect dilution: the capital raised by the startup and the pre-money valuation it received. million, with a valuation of $10 million. As shown in Figure 9.5

Pre-Money Valuation 43

Pre-Money Valuation Cofounder Dilution Valuation 43

www.currentlyobsessed.com

MAY 28, 2010

Instead of “We are worth about $5m because we have done XYZ and we need to raise $1m, so let’s sell 20%&# it’s better to think about valuation as an output variable, like “Let’s raise $2mm and sell 33%, our (pre-money) valuation is therefore $4mm.&# Future value is key.

Valuation 42

Valuation Channel Pre-Money Valuation Term Sheet 42

Startup Lessons Learned

JUNE 19, 2019

Then in 2008, he had a revelation from his experience on the Penn endowment board about how to democratize investing advice and “accidentally” founded a new company to do it. It was 20 to 30, not 100, because of the dilution from the capital.

Silicon Valley 159

Silicon Valley Lean Venture Capital Pre-Money Valuation 159