article thumbnail

The Changing Structure of the VC Industry

Both Sides of the Table

Limited Partners or LPs (the people who invest into VC funds) have taken notice as 2014 is by all accounts the busiest year for LPs since the Great Recession began. pre-money valuation you certainly would want to exercise your right to continue investing if you had prorata rights.

article thumbnail

B is for BUBBLE: Venture Capital in 2013

VC Cafe

Across all investment stages, median pre-money valuations last year rose dramatically. Danny Cohen, Partner at Carmel Ventures and keynote speaker at the upcoming Marketing & Ad;Tech Israel conference, discusses three trends impacting 2014 Israeli digital media: Content Marketing, Next-Gen Publishing and Mobile Advertising.

Insiders

Sign Up for our Newsletter

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

article thumbnail

A Great Discussion with @skupor @davemcclure @msuster on Changes in the VC Industry

Both Sides of the Table

(not in video but late stage valuations have grown 24% compounded years for the past 4 years which is higher than any segment. Four years ago people paid $66m median pre-money valuation and are now paying $155m. This can’t all be driven by increased company performance). And we ended. Startup Lessons'

Valuation 309
article thumbnail

The Truth About Convertible Debt at Startups and The Hidden Terms You Didn’t Understand

Both Sides of the Table

As in, “your money into my company will convert at a 15-20% discount to the next round of capital I raise with a maximum price of $8 million pre-money valuation (or whatever the cap was).” Now that it’s 2014 and prices have gone down it doesn’t feel so good. Seriously, dude?

Ratchet 354
article thumbnail

Startup Fundraising Trends: Ask the VCs

Early Growth Financial Services

The trend continued in 2014: with activity during the six months through June the strongest since the comparable period of 2001. Median pre-money valuations have increased by 43% so far in 2014 compared to 2013. This was the largest quarterly investment total since 2001’s first half.

article thumbnail

Are We in Tech Bubble 3.0?

Early Growth Financial Services

First off, how do funding, pricing, and valuations compare to those in previous periods? Looking at private markets: Valuations have risen across all funding stages — Series A pre-money valuations have soared from 4 times in 2009 to 7 times in 2014. While buyout multiples are at 10.7 times versus 6.8