Both Sides of the Table

SEPTEMBER 28, 2014

We’re going to start aggressively spend money on marketing our product. We want a strong balance sheet (um, ok. but that’s our firm’s money on your balance sheet. So money spent should add equity value or create IP that eventually will. Think DropBox, Airbnb, Uber, Maker Studios.

Burn Rate 383

Burn Rate Balance Sheet .Net Valuation 383

VC Adventure

NOVEMBER 14, 2012

I think this is driven both by entrepreneurs who want to take risk out of their business with more cash on the balance sheet, as well as by investors who, despite higher frothy valuations, are looking to hit certain ownership thresholds. You already know that I believe that you’re burning too much money.

Balance Sheet 77

Balance Sheet Valuation Post-Money Valuation Early Stage 77

VC Adventure

NOVEMBER 14, 2012

I think this is driven both by entrepreneurs who want to take risk out of their business with more cash on the balance sheet, as well as by investors who, despite higher frothy valuations, are looking to hit certain ownership thresholds. You already know that I believe that you’re burning too much money.

Balance Sheet 48

Balance Sheet Valuation Post-Money Valuation Early Stage 48

ithacaVC

JANUARY 24, 2013

Having a relatively small about of convertible debt on your balance sheet prior to your Series A financing is not a bad thing. In our example, if the premoney is $3mm and the Series A new investors are putting in $1mm, then they expect to own 25% of the company after the closing ($1mm invested/$4mm post money).

Valuation 53

Valuation Balance Sheet Option Pool Dilution 53

Agile VC

DECEMBER 6, 2012

A little more inside baseball from the VC biz… why VC’s rarely make “crossover” investments, with capital from multiple funds the VC firm manages invested in a single startup (see note 1). I was talking with an entrepreneur recently about this phenomenon.

LP 178

LP Balance Sheet Differentiation Limited Partner 178