Lightspeed Venture Partners
OCTOBER 7, 2012
He had been at it for 6 months and had no sales or distribution lined up yet. The two founders invested $40k in the business, and plan to license it rather than manufacture it because manufacturing seems too hard. So the entrepreneur was willing to accept a valuation more than $10M lower than a previous valuation.
Lightspeed Venture Partners
NOVEMBER 19, 2012
The first 15,000 units sold out in six weeks in specialty retailers that distributed it in the Quantico area, and another 80,000 are being made now. Interestingly, this new deal actually lowered the pre money valuation for the company. 75,000 for 10% implies a $675,000 pre money valuation.
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Tim Keane
JANUARY 12, 2010
3] However, if they are built bottom up, they demonstrate and make explicit a range of business model assumptions the entrepreneur is using to think about his business and its revenue model. An average of these ranges results in a pre-money valuation of about $4MM. stake in the company.
Lightspeed Venture Partners
OCTOBER 22, 2012
This implies a pre money valuation of $1.045M. See my breakdown of week 2 for more on how to calculate pre money valuation.). The pre money valuations on the two deals were close enough to be a wash, but the ability to accelerate the business at twice the speed would have been a real differentiator.
crowdSPRING Blog
APRIL 26, 2013
Downfalls of Distributed Startups – [link]. Q1 Venture Capital Spending & Number Of Deals Down, M&A Activity Drops 44 Percent And Pre-Money Valuations Plummet – [link]. “sometimes you have the right product but the wrong business model.” ” – [link].
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