View from Seed

SEPTEMBER 14, 2021

One thing that jumps out quickly is that TVPI between 2004-2010 (avg 2.6x) has underperformed 2011-2017 (avg 3.0x). 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 ).

Valuation 156

Valuation Pre-Money Valuation Distribution Early Stage 156

ReadWriteStart

SEPTEMBER 10, 2010

You can get cash without diluting your ownership in the company. These are women in their 40s to early 60s, often shopping for younger women. Kristen is doing about $70,000 year-to-date, and expects to hit $200,000 for the 2010 fiscal year based on her holiday sales projections.

Cloud 115

Cloud Silicon Valley Incubator Finance 115

Both Sides of the Table

AUGUST 30, 2010

Funnily enough I just answered this question yesterday on Quora when somebody asked, “Why would an early-stage investor specifically NOT prefer a convertible note structure to straight equity (e.g. Why many early-stage investors DO price rounds (e.g. 20-25% dilution). In down markets more deals are priced.

Equity 319

Equity Early Stage Angel Investor Valuation 319

Hunter Walker

JANUARY 15, 2016

From the middle to 2005 to early 2010 the business was break-even or better every quarter. but before long the secret was out and by 2010 our 2 person sales team was competing against dozens of huge publishers bundling together pet sections and use their large nationwide sales efforts to fight for our bread and butter ad buys.

Technical Review 48

Technical Review Startup Cofounder SMS 48

Berkonomics

FEBRUARY 9, 2017

Email readers, continue here…] For young companies, often the question is whether to suffer a new round of dilution to stimulate growth, or to sell earlier and not share the (presumably) increased proceeds with additional investors.

Dilution 48

Dilution Valuation Early Stage Naming 48

Tim Keane

JANUARY 12, 2010

Bottom Up Market Sizing » January 12, 2010. Please see later version of this post on May 16, 2010 Entrepreneurs are often not experts in the area of term-sheet negotiations and all of the surrounding issues.   A cumulative dividend can get to be very expensive and is not often a feature in early stage terms.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

rapidrollout.wordpress.com

JANUARY 15, 2011

By deciding to use a consulting CTO on a temporary basis, you avoid getting stalled in the earliest stages. And finally, you may be able to avoid diluting your equity. Preserve your equity by using a consulting CTO to ramp up your company before securing early-stage financing and hiring a permanent technology partner.

Fractional CTO 40

Fractional CTO CTO CTO Hire Fractional VPE 40

This is going to be BIG.

DECEMBER 28, 2013

The classes got too big and quality was diluted because, by PG''s own admission, YC " grew too fast.". You could argue that the recent companies are too early, so I''ll take that challenge and compare it with my own portfolio. That''s less than 10%.

Venture Capital 152

Venture Capital Cofounder IRR Dilution 152

www.startupnorth.ca

OCTOBER 23, 2010

But for every founder, there is an early employee that takes near equal risks in joining an early-stage company. Remember the goal is to incent early employees to have an emotional ownership of the product and company they are building. Darmesh Shah has a great list of insights for employees joining early stage companies.

Employee 41

Employee Founder Salary Equity 41

Agile VC

JULY 11, 2012

Here’s a slightly perverse scenario… Acme Ventures starts out as an early-stage VC investing in US-based IT companies. But usually what makes a VC partnership great in its early days doesn’t easily translate into other new strategies down the road. they generate $400M in proceeds from that $100M).

Silicon Valley 240

Silicon Valley Carried Interest Cofounder Boston 240

dondodge.typepad.com

JANUARY 15, 2011

Entrepreneurs face some pretty tough questions at a very early stage. How much equity should I grant to early employees? The second and third rounds of funding take additional shares of equity and dilute existing investors and founders. Dont worry about giving up too much equity at an early stage.

Equity 40

Equity Employee Dilution Valuation 40

K9 Ventures

MARCH 23, 2011

The founders’ interest is to maximize the valuation of the company at the time of a follow-on financing, thereby minimizing founder dilution. With some of the recent high cap notes that we have seen in 2010 and 2011, I predict that the mis-alignment of incentives will still be an issue in cases where those caps don’t kick in.

Pre-Money Valuation 132

Pre-Money Valuation Valuation Equity Liquidation Preference 132

aweissman.com

JANUARY 30, 2010

Jan 30, 2010. There is an amazing wealth of innovation around early stage venture financing, most of which developed in just the past few years. If not, the value of the exchange fund is diluted. If not, the value of the exchange fund is diluted. skip to main | skip to sidebar. aweissman.com.

Early Stage 46

Early Stage Entrepreneur Cofounder Framework 46

Professor VC

JANUARY 17, 2008

I guess you can make the argument that the founders keep more of the company under the take angel money at a $1M pre-money valuation, but the stars need to be aligned and it is much more likely that initial VC funding in the angel scenario would be at a lower valuation with significantly more dilution. ► 2010. (7).

Pre-Money Valuation 28

Pre-Money Valuation Angel Investor Angel Groups Valuation 28

Pascal's View

JANUARY 28, 2010

Many venture capitalists and other capital markets experts believe that 2010 will be a better year for achieving IPO liquidity because a number of well established companies that remain private have reached sufficient scale to attract much-needed public equity funding. This relationship is often absent among later-round venture investors.

Management 53

Management Silicon Valley Virginia Seattle 53

Austin Startup

MARCH 7, 2021

In 2019 and 2020, we saw hundreds of millions of dollars in non-dilutive funding go to Texas startups, most of which had never worked with the government before. At the same time, early-stage companies are thinking beyond the high prices of Silicon Valley to put down roots and find financing and growth partners.

Texas 90

Texas San Antonio Houston Dallas 90

www.quora.com

SEPTEMBER 22, 2011

Update Link to Questions, Topics and People Add Find Questions, Topics or People Cancel Flag Answer 2 Comments • Mar 9, 2010 Cheers Anon - EPIC answer! +1 1 and lots of thanks for articulating this so well Matthew Carroll • Nov 3, 2010 I'm curious how relevant this answer is now, one year later. is lowered.

Equity 40

Equity Employee Founder Cofounder 40

www.seriesseed.com

MARCH 2, 2010

SeriesSeed.com Series Seed Financing Documents Blog Home Documents Blog Archives Subscribe 09/02/2010 Version 2.0   That said, I think this quote accurately captures the life-cycle of creating a simple set of documents for early stage investment. price based anti-dilution). Then they laugh at you. Then you win.”

Finance 58

Finance Term Sheet Equity Aggregator 58

blog.nahurst.com

JULY 19, 2010

I assume both cofounders will be diluted equally as more employees and investors get involved. 6c] Non-technical cofounder has MBA -0%: (this is my opinion) In the early days of a startup, an MBA doesnt help much. Loading mentions Retweet Comments (6) Jul 19, 2010 Scott said. Jul 19, 2010 Nathan Hurst said.

Technical Cofounder 43

Technical Cofounder Cofounder Equity Salary 43

Professor VC

JUNE 20, 2011

While my ownership stake in the company has been diluted through these financings (and the merger with uControl), my carried interest (paper value of my equity) has been going up with each increase in valuation. ► 2010. (7). So what does this all mean. As I said up front, I have mixed emotions about the financing.

San Jose 28

San Jose Angel Investor Term Sheet Venture Capital 28

Startup Company Lawyer

JANUARY 9, 2011

I started writing this post in September 2010, but only got around to finishing it.). Convertible debt with a price cap seems to be the preferred structure for early-stage financings. Paul Graham has sparked some discussion on the topic in August 2010 when he tweeted “Convertible notes have won.

Liquidation Preference 57

Liquidation Preference Finance Preferred Stock Common Stock 57

Professor VC

DECEMBER 8, 2015

Musk was the early winner taking the CEO role (for a brief period) in the merged company and the largest equity stake as well. Not surprisingly, the merger was highly dilutive, particularly to Confinity/PayPal shareholders. I was a Limited Partner in Angel Investors II (Ron Conway's angel fund) that was an investor in Confinity.

Merger 28

Merger LP IPO Redemption 28

Life Beyond Code

SEPTEMBER 27, 2011

Through the spring of 2010, we released four volumes of EJ books and continued to experiment with the roundtables, which became increasingly popular. Meanwhile, in January 2010 my New Year’s resolution was published. By April 2010, the One Million by One Million (1M/1M) global initiative had been formally named.

Programming 116

Programming Silicon Valley Bootstrapping Technical Review 116