Tim Keane

JANUARY 12, 2010

Bottom Up Market Sizing » January 12, 2010. Term-sheets and Valuations: Thinking about Negotiations. 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. The Valuation Question. Let’s start at the end.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Cracking the Code

DECEMBER 1, 2009

Cloudonomics and 2010 Planning for your SaaS and Cloud Computing business. As we get close to the end of the year, I thought it would be interesting to put together a post on how to approach the 2010 planning. Detailed SaaS Spreadsheet (Valuation and CAC benchmark). SaaS 13 Index Valuation. ► 2010. (5).

Software Review 48

Software Review Technical Review Cloud Europe 48

Gust

OCTOBER 16, 2012

This summer I conducted our third annual survey of the pre-money valuation of pre-revenue companies recently funded by angel groups in North America. Access to our 2010 and 2011 surveys can be found at 2011 Valuation Survey of North American Angel Investor Groups. 2012 Valuation Survey. Organization. Life Science.

Angel Groups 169

Angel Groups Valuation Pre-Money Valuation North Dakota 169

SoCal CTO

FEBRUARY 2, 2011

Because of this, I've always tried to stay up-to-speed on how early-stage investors look at valuation of companies. Bill Payne is an expert on how early-stage investors should look at valuation. He just post: Establishing the Pre-money Valuation of Pre-revenue Startups. What are they really looking for? is a requirement.

Valuation 198

Valuation Revenue Pre-Money Valuation Early Stage 198

Both Sides of the Table

FEBRUARY 12, 2019

Between 1999–2005 the costs went down by 90% and between 2005–2010 they went down a further 90%. The reality is that as a result of two major trends the costs of starting a technology startup went down massively. I launched my first startup in 1999 so I know the economics of launching from first-hand experience.

Venture Capital 328

Venture Capital Technical Review Seed Stage IPO 328

View from Seed

DECEMBER 4, 2019

Over the last 10 years, we’ve been in a bull market with considerable froth in late stage financing activity and valuations. The biggest delta was in 2010, and guess what company raised their first outside funding round that year – Uber. This would suggest that TVPI would be performing well.

LP 256

LP IRR Distribution Portfolio 256

Cracking the Code

FEBRUARY 23, 2011

It would have been easy to explain the difference by changes in the 2010/2011 revenue growth projections but unfortunately that is not the case. SaaS companies projected to grow 18% over this period in January 2010 and this projection moved up only to 20% today. Detailed SaaS Spreadsheet (Valuation and CAC benchmark).

Software Review 101

Software Review Technical Review Valuation Europe 101

View from Seed

SEPTEMBER 14, 2021

Or is there a major disconnect between a portfolio’s valuations and the actual dollars returned to LPs? One thing that jumps out quickly is that TVPI between 2004-2010 (avg 2.6x) has underperformed 2011-2017 (avg 3.0x). Both early- and late-stage startup valuations are currently elevated. How have more recent vintages performed?

Valuation 319

Valuation Pre-Money Valuation Distribution Early Stage 319

Both Sides of the Table

OCTOBER 21, 2009

Montgomery expects M&A to rebound to the normal recent levels at 450 deals by 2010. Nearly 50% say they will increase their activity levels in 2010 (hallelujah!) Pure Digital to Cisco) but that even the 2nd largest will get much lover valuations. They have data from surveys they did with corporate development officers (e.g.

Technical Review 241

Technical Review IPO Southern California Venture Capital 241

Gust

OCTOBER 12, 2011

During the summer of 2010, I developed a workshop, A New ACEF Valuation Workshop for Angels and Entrepreneurs. To provide some reference points, I surveyed thirteen angels groups in North American to determine their recent experience in negotiating the pre-money valuation of pre-revenue companies. Current Average. up slightly.

Angel Groups 125

Angel Groups Valuation Pre-Money Valuation St. Louis 125

View from Seed

SEPTEMBER 14, 2021

Or is there a major disconnect between a portfolio’s valuations and the actual dollars returned to LPs? One thing that jumps out quickly is that TVPI between 2004-2010 (avg 2.6x) has underperformed 2011-2017 (avg 3.0x). Both early- and late-stage startup valuations are currently elevated. How have more recent vintages performed?

Valuation 295

Valuation Pre-Money Valuation Distribution Early Stage 295

Steve Blank

MAY 29, 2011

In April 2010 I received an email that said, “I’m an incoming Stanford student in the fall and working on a project that a number of people suggested I get in touch with you about.&#. However, this does not mean that investors don’t have a significant effect on valuations and M&A). Ok, I get a lot of these.

Technical Cofounder 333

Technical Cofounder Early Stage Startup Silicon Valley 333

Steve Blank

NOVEMBER 5, 2009

This post describes how companies using the Customer Development model can increase their credibility, valuation and probability of getting a first round of funding by presenting their results in a “Lesson Learned&# venture pitch. Reply Charlie Crystle , on April 8, 2010 at 12:31 pm Said: brilliant post.

Customer Development 264

Customer Development Developer Customer Silicon Valley 264

Lightspeed Venture Partners

OCTOBER 7, 2012

That’s why most entrepreneurs do not make a specific ask on valuation, but wait to hear offers from investors. The entrepreneur launched Zomm in late 2010 and did $700k in sales that year. But the company had previously raised $5M for 17% of the company, implying a post money valuation after that investment of $29.4M.

Technical Review 110

Technical Review Technical Cofounder Valuation Pre-Money Valuation 110

Agile VC

MAY 26, 2011

To give you a sense, for 2002 the entire US online ad market was $6B and had shrunk year over year (it was $25B+ for 2010). The terms and valuation for both offers were comparable and when the team debated which path to choose, we all agreed both firms would have made good partners. It was a pretty good valuation for the time.

Term Sheet 178

Term Sheet Silicon Valley Technical Review Social Network 178

Steve Blank

SEPTEMBER 14, 2009

Underwriters realized that as long as the public was happy snapping up shares, they could make huge profits on the inflated valuations (regardless of whether or not the company should have ever been public.) The valuations for acquisitions were nothing like the Internet bubble, but there was a path to liquidity, difficult as it was.

Silicon Valley 223

Silicon Valley IPO Technical Review Venture Capital 223

Both Sides of the Table

MAY 19, 2010

Founded in November 2007 in New York City by Alexis Maybank and Kevin Ryan (co-founder of DoubleClick); CEO is Susan Lyne (ex-CEO Marta Stewart Living Omnimedia) Revenue estimates: $50mm in 2008; $170mm in 2009 (versus budget of $150mm); $450mm forecasted for 2010. Moving into online education courses for 8 th -12 th grade in Summer 2010.

Partner 240

Partner New York City Cofounder Syndicate 240

Ben's Blog

MARCH 24, 2011

As we do so, keep in mind that the relevant bubble statistic is not valuation. High valuations are fine if the underlying value is there. In the great bubble of 1998-2000, the boom in public valuations mirrored the boom in private valuations. If too much venture capital hits the streets, valuations will bubble up.

Technical Review 78

Technical Review Venture Capital Valuation Database 78

crowdSPRING Blog

JANUARY 5, 2011

Top Startup Trends of 2010 – [link]. Keeping Score: Exit Activity for Venture Backed Companies in 2010 - [link]. Top 15 New Social Media Apps of 2010 – [link]. The Top 50 Best Photoshop Tutorials from 2010 – [link]. The Best PSDFAN Tutorials of 2010 – [link].

Social Media 93

Social Media Small Business Design Media 93

Steve Blank

NOVEMBER 12, 2009

Not just because we can command a 3-4x step up in valuation if we find product/market fit pre [.] Reply Don’t forget to keep it simple – Recomended reading from Steve Blank « Spreading FINANCIAL INTELLIGENCE , on May 10, 2010 at 9:28 am Said: [.] It’s a litmus test of how you [.]

Venture Capital 216

Venture Capital Silicon Valley RSS Hockey Stick 216

ReadWriteStart

NOVEMBER 22, 2010

The law firm Fenwick & West LLP has released its Third Quarter 2010 Silicon Valley Venture Capital Survey. The survey looks at the valuations and the terms of financing for over 100 technology companies in Silicon Valley that reported raising capital in the third quarter of this year. The full survey can be downloaded here.

Silicon Valley 115

Silicon Valley Venture Capital Valuation Down Round 115

Both Sides of the Table

APRIL 15, 2010

I don’t believe that search is the only answer in 2010 as it was in 2000. billion valuation. They only recently raised $30 million at around a $300 million valuation and THAT raised eyebrows. The question will be “at what price?&# And for investors, “at what valuation did they get in?&#. $10

Venture Capital 271

Venture Capital Affiliate Valuation San Francisco 271

Cracking the Code

JANUARY 16, 2012

Detailed SaaS Spreadsheet (Valuation and CAC benchmark). SaaS 13 Index Valuation. ► 2010. (5). State of the SaaS 13: Q1 2010 Sentiment. Happy New Year 2010! Cloudonomics and 2010 Planning for your SaaS and C. S&M productivity (CAC ratio) for the SaaS 13 Index. My Investments. CornerstoneOnDemand.

Software Review 95

Software Review Europe Technical Review Spain 95

Cracking the Code

NOVEMBER 7, 2010

Sunday, November 07, 2010. Detailed SaaS Spreadsheet (Valuation and CAC benchmark). SaaS 13 Index Valuation. ▼ 2010. (5). State of the SaaS 13: Q1 2010 Sentiment. Happy New Year 2010! Cloudonomics and 2010 Planning for your SaaS and C. Cracking The Code. A Quick & Funny Summary of AdTech.

Software Review 59

Software Review Technical Review Europe Cloud 59

Cracking the Code

AUGUST 3, 2011

Detailed SaaS Spreadsheet (Valuation and CAC benchmark). SaaS 13 Index Valuation. ► 2010. (5). State of the SaaS 13: Q1 2010 Sentiment. Happy New Year 2010! Cloudonomics and 2010 Planning for your SaaS and C. S&M productivity (CAC ratio) for the SaaS 13 Index. My Investments. CornerstoneOnDemand.

Software Review 67

Software Review Europe Technical Review Search 67

View from Seed

SEPTEMBER 14, 2021

Or is there a major disconnect between a portfolio’s valuations and the actual dollars returned to LPs? One thing that jumps out quickly is that TVPI between 2004-2010 (avg 2.6x) has underperformed 2011-2017 (avg 3.0x). Both early- and late-stage startup valuations are currently elevated. How have more recent vintages performed?

Valuation 156

Valuation Pre-Money Valuation Distribution Early Stage 156

Steve Blank

JUNE 15, 2011

A tech bubble is the rapid inflation in the valuation of public and private technology companies that exceeds their fundamental value by a large margin. Today, the signs of the new bubble are the Linked-In initial public offering (IPO), Facebook’s stratospheric valuation and the rapid rise of early-stage startup valuation.

Silicon Valley 328

Silicon Valley Stealth Valuation Mississippi 328

steveblank.com

JULY 8, 2011

– Mike [link] Reply Jeff Skinner , on May 24, 2010 at 9:28 am said: Steve, you don’t know me though I use your ‘Customer Development process’ video in my classes (Entrepreneurship at London Business School). Thanks Phil Gainley Reply Margit Niemelä , on August 16, 2010 at 6:29 am said: Steve, wonderful job!

Software Review 110

Software Review Startup Silicon Valley Analytics 110

Gust

OCTOBER 20, 2011

In 2011, the valuation of pre-revenue, start-up companies is typically in the range of $1.5–$2.5 Scorecard Valuation Methodology. 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.

Valuation 146

Valuation Pre-Money Valuation Intellectual Property Technical Review 146

VC Cafe

FEBRUARY 11, 2020

billion valuation led by Andreessen Horowitz. Stripe (founded 2010) – at over $35 billion valuation, nothing seems to slow Stripe down on their quest to become the top payments solution online. In April 2019, the Okta launched a $50 million fund to support the future of modern identity, security and privacy solutions.

Balance Sheet 201

Balance Sheet Startup IPO Venture Capital 201

Altgate

DECEMBER 16, 2010

@altgate Startups, Venture Capital & Everything In Between Skip to content Home Furqan Nazeeri (fn@altgate.com) ← Pre-Money Valuation vs Number of Founders Where Do Tech VCs Invest? Below is a chart of some data from the 2010 CompStudy survey. But first, let’s look at pre-money valuation by liquidation preference.

Liquidation Preference 39

Liquidation Preference Pre-Money Valuation Term Sheet Valuation 39

Startup Lessons Learned

SEPTEMBER 22, 2008

The law of large numbers (of customers) says you cant help but make at least some money - your valuation is determined by how well you monetize the tidal wave of growth. The spread between your LTV and blended CPA determines either your profitability or your rate of growth, and a high valuation depends on balancing these two factors.

San Francisco 167

San Francisco CPA SEM CTO Hire 167

YoungUpstarts

OCTOBER 23, 2017

An early example occurred in 2010 when UBS Analyst Neil Currie accessed satellite imagery to monitor activity in Walmart parking lots, running the data thru a mathematical regression to translate it into customer activity for better earnings forecasts. Morgan Stanley predicts that Robo Advisors will manage $6.5

Technical Review 154

Technical Review Artificial Inteligence Software Review IPO 154

ReadWriteStart

JANUARY 29, 2023

According to Jungle Ventures, Southeast Asia’s technology startups had a combined valuation of $340 billion in 2020. In 2010, the VC investment in Southeast Asia startups was just $100 million. This amount can triple by 2025. Also, Southeast Asia’s startups raised a record $6 billion in the first quarter of 2021.

Asia 171

Asia Indonesia Silicon Valley Malaysia 171

ReadWriteStart

JANUARY 3, 2011

514 companies achieved liquidity in 2010, netting $39.3 46 venture-backed companies went public in 2010, raising $3.4 Exit activity is staging a comeback but capital netted lagged as large M&As and IPOs were still uncommon in 2010," said Jessica Canning, director of global research for Dow Jones VentureSource. Discuss.

IPO 118

IPO .Net Capital Gains Acquisition 118

Cracking the Code

FEBRUARY 24, 2010

Wednesday, February 24, 2010. Detailed SaaS Spreadsheet (Valuation and CAC benchmark). SaaS 13 Index Valuation. ▼ 2010. (5). State of the SaaS 13: Q1 2010 Sentiment. Happy New Year 2010! Cloudonomics and 2010 Planning for your SaaS and C. Cracking The Code. Posted by Philippe Botteri.

Software Review 54

Software Review Technical Review Europe Venture Capital 54

Berkonomics

FEBRUARY 23, 2023

He concluded that the sweet spot for valuation was in the $20–30 million sales price range, and that many, many times more deals were completed in that range than above $100 million in valuation at exit. Not so long ago, Basil Peters wrote his book, “Early Exits,” after analyzing 150 young companies and their exits.

Dilution 62

Dilution Valuation Early Stage Equity 62