article thumbnail

The Changing Venture Landscape

Both Sides of the Table

I’m over-paying for every check I write into the VC ecosystem and valuations are being pushed up to absurd levels and many of these valuations and companies won’t hold in the long term. On the one hand, you’re over paying for every investment and valuations aren’t rational. dot-com bonanza. Ten years on much has changed.

article thumbnail

Why Startups Should Raise Money at the Top End of Normal

Both Sides of the Table

2: As expected at least one person accused me of writing this post because I want to see lower valuations. As the risks below get eliminated the higher the valuation investors are prepared to pay. So rounds tend to be “range bound&# where the top end of the valuation spectrum often being done in boom markets (i.e.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

10+ Trends: Recap of 2011 and What’s Next…

thebarefootvc

But even more exciting is when I see inflection points of adoption — which is why 2011 was a particularly exhilirating year for me. What We Saw in 2011…. The list of applications to engage, empower and organize citizens continues to grow, and will be one of the most defining legacies of 2011.

article thumbnail

How to value your SaaS company

VC Adventure

So no surprise that when River Cities Capital released an overview of SaaS operating and valuation benchmarks, I hung on every juicy detail. The valuation metrics show this clearly. Not surprisingly companies raised well above their revenue level in the earlier stages as they built product and sales and marketing. on average.

IPO 113
article thumbnail

Cracking The Code: SaaS Multiples: Recovery or Bubble?

Cracking the Code

Wednesday, 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. Detailed SaaS Spreadsheet (Valuation and CAC benchmark). SaaS 13 Index Valuation. sales and marketing. (10). ▼ 2011. (2).

article thumbnail

Shark Tank Season 4 week 4 breakdown

Lightspeed Venture Partners

The company has done $400k in sales in less than two years and had an early test deal with a local supermarket chain that they were massively overperforming on. He had been at it for 6 months and had no sales or distribution lined up yet. The entrepreneur launched Zomm in late 2010 and did $700k in sales that year.

article thumbnail

Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

Term-sheets and Valuations: Thinking about Negotiations.   I’ve sat down with entrepreneurs and a copy of a term sheet guide I like [ “Term Sheets & Valuations - A Line by Line Look at the Intricacies of Venture Capital Term Sheets & Valuations ” by Alex Wilmerding, Aspatore Press.] The Valuation Question.