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). 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. Was this a lost decade for venture capital?

Valuation 319

Valuation Pre-Money Valuation Distribution Early Stage 319

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). 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. Was this a lost decade for venture capital?

Valuation 295

Valuation Pre-Money Valuation Distribution Early Stage 295

Lightspeed Venture Partners

OCTOBER 7, 2012

He did $5M in 2011 sales and is projected $7.2m Upon questioning, it came out that the entrepreneur had invested $4M of his own money into the company and then sold 17% of the company to another investor for $5M. Finds your keys using an app on your phone. Provides an emergency one touch dialer. in 2012 sales and $2M in income.

Technical Review 110

Technical Review Technical Cofounder Valuation Pre-Money Valuation 110

David Teten

SEPTEMBER 16, 2014

Sohl: “The Angel Investor Market in 2011: The Recovery Continues”. Villalobos & Payne: “Startup Pre-Money Valuation: The Keystone to Return on Investment” 117. Time Period. Total Investments. Exited Investments. 1994 – present. Band of Angels Website FAQ. approx 1999-07. 1961- 1996.

Angel Investor 114

Angel Investor Technical Review Venture Capital Pre-Money Valuation 114

Lightspeed Venture Partners

SEPTEMBER 21, 2013

Despite having over 500k downloads and making $450k in revenue over the last 21 months, he had only $185k left in the bank, which meant that he would be out of business in 90 days if he didn’t raise more money. pre money valuation and planned to use the money to market the app. pre money valuation).

Pre-Money Valuation 161

Pre-Money Valuation Valuation Dilution Distribution 161

Both Sides of the Table

JUNE 22, 2011

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).

Saudi Arabia 309

Saudi Arabia Valuation IPO Technical Review 309

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). 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. Was this a lost decade for venture capital?

Valuation 156

Valuation Pre-Money Valuation Distribution Early Stage 156

Agile VC

MAY 26, 2011

May 26, 2011. round which closed in November 2003, and the pre-money valuation between $10 million and $15 million. © 2011 GenuineVC - All rights reserved. How to Evaluate Firms for a Seed VC. How To Think About The Future. AGILEVC My idle thoughts on tech startups. LinkedIn: The Series A Fundraising Story.

Term Sheet 178

Term Sheet Silicon Valley Technical Review Social Network 178

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

Scott Edward Walker

APRIL 22, 2012

In Fenwick & West’s 2011 Seed Financing Survey (the “Fenwick Survey”), the percentage of convertible note seed financings that granted a discount to investors was 67% in 2010 and 83% in 2011; and the median discount was 20% in both 2010 and 2011. What is a Conversion Valuation Cap?

Pre-Money Valuation 72

Pre-Money Valuation Finance Liquidation Preference Founder 72

Tim Keane

JANUARY 12, 2010

An average of these ranges results in a pre-money valuation of about $4MM.   If similarly situated companies are seeing $3.5MM pre-money valuations, this might become the target valuation. An average of these ranges results in a pre-money valuation of about $4MM. March 2011.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Lightspeed Venture Partners

OCTOBER 22, 2012

This implies a pre money valuation of $1.045M. See my breakdown of week 2 for more on how to calculate pre money valuation.). The pre money valuations on the two deals were close enough to be a wash, but the ability to accelerate the business at twice the speed would have been a real differentiator.

Pre-Money Valuation 101

Pre-Money Valuation Valuation Dilution Differentiation 101

Gust

OCTOBER 20, 2011

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

ithacaVC

MARCH 11, 2016

I first wrote about Rule 409A back in September 2011. Here is the post, which focused mostly on how 409A valuations are used for stock option purposes. And I think that early stage companies should take the risk and not use 409A valuations. The 409A valuation is not based in VC reality. I can understand that!

Pre-Money Valuation 40

Pre-Money Valuation Stock Options Valuation Later Stage 40

K9 Ventures

MARCH 23, 2011

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. If you think the answer is 5%, because the financing happened at the same pre-money valuation as the cap in the note, then you’re wrong.

Pre-Money Valuation 132

Pre-Money Valuation Valuation Equity Liquidation Preference 132

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

www.mattbartus.com

DECEMBER 9, 2012

Let’s say you receive a term sheet for a $1 million investment at a $3 million fully diluted pre-money valuation, and you’re kind of disappointed. Take a look at the numbers: Pre-Money. One possibility is to negotiate a higher valuation and offer warrants (i.e., Post-Money. July 2011 (3).

Warrant 40

Warrant Valuation Pre-Money Valuation Term Sheet 40

Professor VC

JANUARY 17, 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. He also said they typically only invest at a $1 million pre-money valuation or less. ► 2011. (7). Older Post.

Pre-Money Valuation 28

Pre-Money Valuation Angel Investor Angel Groups Valuation 28

K9 Ventures

MAY 14, 2011

The incubators invest usually for an equity stake and buy equity at a extremely low valuation (for example, 7% for $15,000, which implies a pre-money valuation of less than $200,000). or may come from VC firms (as is now the case with YC being funded by Sequoia ).

Preferred Stock 125

Preferred Stock Seed Stage Incubator Early Stage 125

Pascal's View

AUGUST 21, 2011

In April 2011, just prior to the Linked In, Pandora, and RenRen IPO’s, Fred Wilson reaffirmed his belief on his blog that we were not in a bubble in this sector: “I n all the posts over the past year or so outlining my thoughts on the financing and valuation environment in the internet sector, I’ve avoided using the word Bubble.

Valuation 50

Valuation Social Media Media IPO 50

Scott Edward Walker

APRIL 9, 2012

For example, in Fenwick & West’s 2011 Seed Financing Survey (the “Fenwick Survey”), convertible noteholders were granted a Board seat in only 4% of the seed financings; while preferred stockholders were granted a Board seat in 70% of such financings.

Preferred Stock 87

Preferred Stock Finance Common Stock Liquidation Preference 87

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. startupcto

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