View from Seed

SEPTEMBER 14, 2021

Seed investors are being compensated for the risk because later-stage investors are paying higher prices, and diluting early-stage investors less. Note : not including vintages > 2012 because they have not been fully baked and there is some noise. This could mean that everything is going to be ok, as Tim Urban explained.

Valuation 319

Valuation Pre-Money Valuation Distribution Early Stage 319

View from Seed

SEPTEMBER 14, 2021

Seed investors are being compensated for the risk because later-stage investors are paying higher prices, and diluting early-stage investors less. Note : not including vintages > 2012 because they have not been fully baked and there is some noise. This could mean that everything is going to be ok, as Tim Urban explained.

Valuation 295

Valuation Pre-Money Valuation Distribution Early Stage 295

Startup Professionals Musings

NOVEMBER 4, 2013

They don’t realize that this option would likely be their worst nightmare, since it costs millions for the road show, usually dilutes your equity to a tiny fraction, and takes away all your entrepreneurial control. IPOs in 2008, the market was up to a still trivial 128 in 2012 (compared to 675 in 1996). After a record low of 39 U.S.

IPO 224

IPO Founder Exit Strategy Investment Bankers 224

Austin Startup

NOVEMBER 25, 2018

5, 2012, and it is a very personal post. I failed to do that with Coremetrics and I paid dearly for it with dilution. io , where I’ve been writing about primarily entrepreneurship since 2012. I don’t think we could have built a business as ambitious as data.world without VC and angel backing, and we’ve raised $45.3m

Bootstrapping 48

Bootstrapping Austin Equity Cofounder 48

Pascal's View

DECEMBER 19, 2012

My comments on the key findings from the Shareholder Representative Services 2012 M & A Deal Terms Study are in bold: Deal sizes: although the median deal size* rose slightly to $75 million in 2012 from $70 million in 2011, deals $50 million or less grew to 42% of deals in 2012, up from 33% in 2011. That’s for sure!

Acquisition 31

Acquisition Merger Dilution Aggregator 31

View from Seed

SEPTEMBER 14, 2021

Seed investors are being compensated for the risk because later-stage investors are paying higher prices, and diluting early-stage investors less. Note : not including vintages > 2012 because they have not been fully baked and there is some noise. This could mean that everything is going to be ok, as Tim Urban explained.

Valuation 156

Valuation Pre-Money Valuation Distribution Early Stage 156

keen.io

FEBRUARY 5, 2013

August 21, 2012. If the company is pre-funding or only has a small friends-and-family seed round, then the numbers should go up from there, based on expected dilution and greater risk.” Assumption: The pre-dilution amount prior to Series A should be approximately double the amount in this post-Series-A chart. Michelle Wetzler.

Salary 50

Salary Equity Startup San Francisco 50

Scott Edward Walker

APRIL 8, 2013

. “Be careful not to have too many co-founders; it’s the most expensive dilution you’ll ever face.” Seed Finance Survey 2012 (via Fenwick) [link]. Seed Finance Survey 2012 (via Fenwick) [link]. Twitter Highlights co-founders dilution quora seed seed finance startup startup ideas startups'

Dilution 49

Dilution Cofounder RSS Finance 49

99u.com

DECEMBER 22, 2012

Assuming no dilution (which is not a good assumption), this means you need to sell for $200 million. If tenths of a percent of options for an advisor causes too much dilution, then youve failed anyway. Copyright © 2006-2012 Behance, Inc. 0.01% is where it gets interesting, 0.05% is where youre talking turkey. Creative Jobs.

Turkey 40

Turkey Dilution Portfolio Exit Strategy 40

The Equity Kicker

MAY 31, 2016

Looking at 2011 and 2012 the top 100 investments created c$10-15bn in value. The dangerous thing for early stage investors is dilution by later stage investors. Their advice to LPs is to catch these distributed returns by investing in emerging managers outside of traditional US venture heartlands.

Venture Capital 60

Venture Capital Early Stage Dilution Later Stage 60

Both Sides of the Table

APRIL 25, 2011

They feel very confident they can hit $18 – 20 million in 2012. So assume that in 2012 the company would do $20 million in sales and $2 million in profits (10%) and 2013 they would do sales of $25 million and $4 million in profit (16% net margin) and then slow growth in 2014 to $30 million and $6 million in profit (20% profit).

Silicon Valley 332

Silicon Valley IP Dividend Finance 332

The Equity Kicker

APRIL 13, 2012

The founders in their “Founders’ Letter 2012″, a large part of which I’ve copied below, explain that their reason is to free themselves from outside pressures so they can manage for the long term. FOUNDERS’ LETTER 2012. You can read more about this on AllthingsD. Introduction.

Dilution 87

Dilution Stock Government SEC 87

Tim Keane

JANUARY 12, 2010

.   This is most commonly used when a conversion confers superior economic benefits on the preferred stockholder. ·       Anti-dilution provisions that reduce the price of the preferred shares (using a variety of formulas) in the event that the company issues new stock at a lower price. October 2012.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Both Sides of the Table

SEPTEMBER 5, 2012

This has worked very well in the 2009-2012 time frame because the tech market has boomed in this period. In a standard VC term sheet there is a standard term called an “anti dilution provision” and they are in nearly 100% of deals. It has nowhere near the same dilutive effects as a full ratchet except in extreme edge cases.

Ratchet 354

Ratchet Liquidation Preference Equity Stock 354

www.mattbartus.com

DECEMBER 9, 2012

If you are a company that is fundraising, keep in mind that there are a few different levers you can pull to change the amount of dilution that the founders will experience. 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.

Warrant 40

Warrant Valuation Pre-Money Valuation Term Sheet 40

Agile VC

JULY 11, 2012

July 11, 2012. Like any other form of diluting your focus… it occasionally works, but usually doesn’t. How to Evaluate Firms for a Seed VC Syndicate 10 July 2012, 5:13 pm What A VC Orders for Breakfast Says 27 June 2012, 10:16 am To Leave or Not to Leave as Your Startup Grows 12 June 2012, 12:21 pm.

Silicon Valley 240

Silicon Valley Carried Interest Cofounder Boston 240

The Equity Kicker

JULY 4, 2012

Regular readers will be well aware that through 2011 and into early 2012 Nicholas Lovell and I were writing a series of 50 blog posts designed to help entrepreneurs with the fundraising process, and that we intended to publish them in book format once we were finished.

Venture Capital 107

Venture Capital Due Diligence Participating Preferred Dilution 107

Early Growth Financial Services

MARCH 12, 2015

To be clear, I am talking about crowdsourced or peer-to-peer funding offered by sites like Indiegogo and KickStarter, not equity crowdfunding, which though technically legal since 2012, is still awaiting a legal framework for implementation. Importantly, it also gives startups … Continue reading → Accounting'

Dilution 28

Dilution Startup Equity Framework 28

Pascal's View

OCTOBER 9, 2013

This video focuses on four of those fundamental risks: ( 1) A startup’s high probability of failure; (2) The mathematics of dilution; (3) The tendency to misunderstand a company’s stage of development and, therefore, its capital needs; (4) Understanding the risks associated with investing good money after bad and knowing when to call it quits.

Angel Investor 28

Angel Investor Video Dilution Venture Capital 28

Venture Chronicles

MAY 16, 2012

I suspect the omission of social as a theme reflects a prevailing view that this is just expected to be part of your offering so why focus on it at the risk of diluting the primary messages you are delivering. I have seen SAP CRM apps that have social capabilities so I know this is not out focus for them.

Database 39

Database Technical Review Cloud Acquisition 39

Cracking the Code

OCTOBER 12, 2012

This post is a translation of the article: « Pigeons » : le cri d'alarme d'un fonds américain published on LaTribune (12/10/2012) and is a response to the proposed tax law proposed by the government of Francois Hollande, suggesting to tax all capital gain at the same level than salaries or 60%.

France 71

France Europe Capital Gains Dilution 71

Lightspeed Venture Partners

OCTOBER 22, 2012

The founders focused too much on dilution and on Barbara’s clever ideas on a dimension (marketing) that was not critical to the business. They are on track to do $250k in 2012 and have already made $100k in profit year to date. They lost sight of the core problem that they faced, which was inability to fulfill demand.

Pre-Money Valuation 101

Pre-Money Valuation Valuation Dilution Differentiation 101

Startup Lessons Learned

AUGUST 14, 2013

Steph has incredible energy, as you’ll see in this video of her 2012 Lean Startup Conference lightning talk , where she discussed testing language that “helps people find you, understand you, and choose you.” It would be a blanket approach and, ultimately as you suggested, dilute the messaging and demonstrate a lack of focus.

Lean 167

Lean Conversion Audience Design 167

Feld Thoughts

FEBRUARY 28, 2023

There have been many different language translations of Venture Deals since it was first published in 2012. However, the lack of a conversion right also has implications for anti-dilution protection: in the U.S., In Germany, anti-dilution protection is achieved by issuing additional preferred shares.

Germany 165

Germany Liquidation Preference Option Pool Advisory Board 165

Ben's Blog

JULY 16, 2013

3/30/2012: 15.5. If we took too much dilution, we will work with our new investor to make sure that every employee is still highly financially motivated. One would be wrong: 3/31/1995: 21.0. 3/29/1996: 22.3. 3/31/1997: 23.3. 3/31/1998: 30.8. 3/31/1999: 49.7. 3/31/2000: 73.4. 3/30/2001: 26.3. 3/29/2002: 82.5. 3/31/2003: 44.6.

Down Round 78

Down Round Marketing Preferred Stock Post-Money Valuation 78

David Teten

SEPTEMBER 2, 2017

– Protection against dilution when adding partners. Union Square Ventures ( [link] ). The Palico newsletter of April 12, 2016, included the citeable paragraph below on compensation: THE FOUNDERS OF PE FIRMS SHOULD BE MORE GENEROUS. – Succession. – Protection against constructive termination. – Expense policies.

Private Equity 60

Private Equity Venture Capital Equity Partner 60

thinkspace.com

SEPTEMBER 7, 2012

Should founders have anti-dilution rights? You would want to check and see if your shares can be diluted. Yes, you could be diluted from 10% down to 1% and there’s a number of reason why that could occur. Dilution should occur across the board. What is the equity I should expect (protected from dilution)?

Equity 62

Equity Employee Founder CTO Hire 62

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. ► 2012. (1). Newer Post.

Pre-Money Valuation 28

Pre-Money Valuation Angel Investor Angel Groups Valuation 28

Ben's Blog

JULY 16, 2013

3/30/2012: 15.5 If we took too much dilution, we will work with our new investor to make sure that every employee is still highly financially motivated. One would be wrong: 3/31/1995: 21.0 3/29/1996: 22.3 3/31/1997: 23.3 3/31/1998: 30.8 3/31/1999: 49.7 3/31/2000: 73.4 3/30/2001: 26.3 3/29/2002: 82.5 3/31/2003: 44.6 3/31/2004: 31.6

Marketing 46

Marketing Preferred Stock Post-Money Valuation Down Round 46

Seeing Both Sides

JANUARY 4, 2012

At the onset of 2012, many start-up executives around the world are sticking their copy of Lean Start-Up on the shelf, leaning back, and bemoaning the fact that they have a new set of challenges ahead of them. Obviously, it's not that easy a decision.

Lean 53

Lean Dilution Revenue Hiring 53

Professor VC

JUNE 20, 2011

I am no longer an insider, so dont have any view into current financials, but do know that total financing is now 10X the original plan and at the current accelerating growth rate, revenues will still not hit that $185M until 2012 or 2013, so double the time. ► 2012. (1). So what does this all mean. June 21, 2011 4:21 PM.

San Jose 28

San Jose Angel Investor Term Sheet Venture Capital 28

crowdSPRING Blog

APRIL 3, 2018

As we previously wrote : the attention span of a human adult, according to BBC News , is 9 seconds (the Associated Press reports that in 2012, the average attention span for a human was 8 seconds). Nearly one fifth of all page views in 2012 lasted fewer than four seconds. Keep your site’s primary goal in mind.

Small Business 61

Small Business Design Customer Technical Review 61

betashop.com

OCTOBER 8, 2012

A couple of dilution points here or there wont matter in the long run but working with the right people will.? Don’t skimp on fundraising because of dilution fears.?. Always choose your investors based on who you want to work with, be friends with, and get advice from. ?. Never, ever, choose your investors based on valuation.

Technical Review 108

Technical Review Technology Software Review Valuation 108

Both Sides of the Table

MARCH 30, 2016

2012-2015 were boom times in tech startups as prices were always moving up leading to FOMO leading to higher than normal multiples driven by a massive entry of new investors in the market. They had to focus on getting a “W” one day over the short-term dilution impact of raising at a price lower than they had set out to achieve.

Balance Sheet 150

Balance Sheet Burn Rate Valuation Forecast 150

maplebutter.com

JANUARY 8, 2013

Written By Dan Martell on February 2nd, 2012 | Category: Hiring LeanStartup Marketing Metrics Startup Life | 6 Comments. 2) Co-Founders are the largest form of dilution (if you’re raising) 3) Everything around LeanStartup / Customer Development 4) Understand the micro economics of your business early. Why do I do it? A few nuggets.

Technical Review 44

Technical Review Startup Cofounder Software Review 44

Rob Go

NOVEMBER 30, 2012

Here’s my take on the state of things as they stand at the end of 2012. But I’m noticing this value being diluted somewhat for a few reasons. In some ways, many of the forces that drove the rise of MicroVC’s are as strong as ever. But there are also a whole host of new questions that have arisen. In many cases, this is still true.

Seed Stage 55

Seed Stage Pre-Money Valuation Dilution Early Stage 55

Ben's Blog

MAY 24, 2021

Importantly as well, the positive implications of the 2012 JOBS Act cannot be understated. Among the findings are: SPAC dilution amounts to roughly 50% of the cash ultimately delivered to the companies brought public. We have seen improved capital formation as a result of this legislation and the U.S.

SEC 36

SEC Accredited Investor IPO Technical Review 36