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Praying to the God of Valuation

Both Sides of the Table

Something happened in the past 7 years in the startup and venture capital world that I hadn’t experienced since the late 90’s — we all began praying to the God of Valuation. And then in the late 90’s money crept in, swept in to town by public markets, instant wealth and an absurd sky-rocketing of valuations based on no reasonable metrics.

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Technology, Innovation, and Great Power Competition – Class 4- Semiconductors

Steve Blank

Steve Blank, “ The Secret History of Silicon Valley ” Steve Blank , November 20, 2008. We discussed whether 1) that was true or just anecdotal 2) if true, was it the same in other research universities, 3) why it happened (software startups are getting funded at obscene valuations)? 14, 2016.

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Pre-Money Valuation vs Number of Founders | @altgate

Altgate

@altgate Startups, Venture Capital & Everything In Between Skip to content Home Furqan Nazeeri (fn@altgate.com) ← No one wants to tell you your baby is ugly More on Liquidation Preferences → Pre-Money Valuation vs Number of Founders Posted on December 15, 2010 by admin Here’s a chart of the day worth sharing.

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The Changing Structure of the VC Industry

Both Sides of the Table

We are in a bubble (with so many private $1bn+ valuations). pre-money valuation you certainly would want to exercise your right to continue investing if you had prorata rights. 15 years ago we were at the peak of Internet hype with the launch of many over-capitalized businesses with a market size & opportunity was limited.

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On Bubbles … And Why We’ll Be Just Fine

Both Sides of the Table

In addition to FOMO it is partly driven by massive increase in valuations for earlier-stage companies who raised money at bit seed prices but who still have product risk. million pre-money valuation is now raising $1 million at a $12 million valuation the next investor has nowhere to go but up (or sit out the investment).

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Strategy Roundtable: Try To Get At Least $2M Pre-Money In Seed Round Valuation

ReadWriteStart

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. That is debt financing that converts into equity at the Series A valuation once the price for that is set. (I Sub-$2 million pre-money, it is better to bootstrap.

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Is the Lean Startup Dead?

Steve Blank

This same risk averse, conserve the cash, VC mindset would return after the 2008 meltdown of the housing market.). What matters to investors now is to drive startup valuations into unicorn territory (valued at $1 billion or more) via rapid growth – usually users, revenue, engagements but almost never profits.

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