Remove Aggregator Remove Cap Table Remove Finance Remove Valuation
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What’s a Fair 409A Discount?

VC Adventure

However the board could determine what that fair market value was and, generally speaking, there wasn’t a practical way that these valuations could be challenged. Over night a cottage industry was created to conduct these valuations. So what should this discount be?

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VC Optimism Returning But More Pain Ahead In Their Portfolios

Hunter Walker

At the time, this is last quarter and the stock market has trended upwards nicely since then (a potential leading indicator of private tech valuations), we all agreed venture portfolios were probably still 25-40% overvalued. Valuations. Whatever gets reported is just the tip of the iceberg.

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VCs eating our own dog food: Using technology and analytics to make better investments

David Teten

Some notable metrics are revenue growth rates, free cashflow, leverage ratios, historical financing amounts, returns on marketing spend, customer acquisition costs, lifetime value of customers, customer churn rates, and team social scores. 645 Ventures released a cap table simulator to help level the playing field.

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Why Is There So Much Turnover In Venture Capital?

View from Seed

Yes, there are intermittent points of feedback along the way, like valuation marks from subsequent rounds of financing. Building a venture capital firm isn’t about continuing to scale talent aggregation over time like most businesses, rather it’s about having a consistent right amount of talent and scaling AUM over time.

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On the Road to Recap:

abovethecrowd.com

Why the Unicorn Financing Market Just Became Dangerous…For All Involved. The pressures of lofty paper valuations, massive burn rates (and the subsequent need for more cash), and unprecedented low levels of IPOs and M&A, have created a complex and unique circumstance which many Unicorn CEOs and investors are ill-prepared to navigate.

IPO 40
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Customers Love Free Stuff … But That’s Not Your Problem

abovethecrowd.com

Also, take a look at this critically important data point , also aggregated by Professor Jay Ritter. These are the parties on the cap table prior to the transaction. They can’t sell the stock at this multiple and therefore that valuation is not available to them. of VC-backed companies vs Buyout-backed companies.

IPO 82