Both Sides of the Table

SEPTEMBER 25, 2010

Investors who commit early deserve to have a lower price. I argued it in my post on how social proof helps fund raising with angel investors. “what you really need to get an angel round together are your “anchor tenants.” But that’s what great angels do. &# rings true to me.

Finance 286

Finance Term Sheet Technical Review Warrant 286

Gust

OCTOBER 18, 2011

This is the first of a six part series on different methods used by angel investors to arrive at pre-money startup valuations. Return on Investment (ROI) = Terminal (or Harvest) Value ÷ Post-money Valuation. (in Then: Post-money Valuation = Terminal Value ÷ Anticipated ROI.

Valuation 174

Valuation Pre-Money Valuation Southern California Post-Money Valuation 174

Both Sides of the Table

OCTOBER 12, 2014

This is important for nearly every institutional investor because once you have 25-50 investments being able to “follow” the investments that are working well is critical to making money. If they trust their own due diligence process why worry about a silly thing called “signaling?”

Technical Review 336

Technical Review Later Stage Early Stage LP 336

Both Sides of the Table

JULY 25, 2010

“Yes&# was given to me by one of my favorite angel investor / seed VC’s to work with – John Greathouse of Rincon Venture Partners and author of the blog InfoChachkie that you should check out because it is filled with great info from a guy who has been a very successful operator.

Silicon Valley 293

Silicon Valley Technical Review Southern California Angel Investor 293

Startup Professionals Musings

JANUARY 27, 2012

Entrepreneurs sometimes assume an initial agreement with an Angel is a commitment, so they start spending before any money is received. But due diligence and paperwork take time, and can change everything. The price is the percent of ownership given to the investor, calculated as “investment/post-money valuation.”

Term Sheet 223

Term Sheet Pre-Money Valuation Due Diligence Post-Money Valuation 223

Startup Professionals Musings

SEPTEMBER 14, 2010

Entrepreneurs sometimes assume an initial agreement with an angel is a commitment, so they start spending before any money is received. But due diligence and paperwork take time, and can change everything. The price is the percent of ownership given to the investor, calculated as “investment/post-money valuation.”

Term Sheet 227

Term Sheet Pre-Money Valuation Due Diligence Post-Money Valuation 227

Gust

OCTOBER 17, 2011

Entrepreneurs sometimes assume an initial agreement with an angel is a commitment, so they start spending before any money is received. Due diligence and paperwork take time, and can change everything. The price is the percent of ownership given to the investor, calculated as “investment/post-money valuation.”

Term Sheet 158

Term Sheet Pre-Money Valuation Due Diligence Post-Money Valuation 158