Both Sides of the Table

FEBRUARY 25, 2010

million at a $15 million pre-money valuation. We had people hearing through the grapevine that we were about to raise money and new investors started calling us to get in on the deal. My co-founder and other management team members wanted us to hold off and see whether we could get the deal done at a higher price.

Technical Review 301

Technical Review Term Sheet Due Diligence Venture Capital 301

Agile VC

MAY 26, 2011

Many assume it was a cakewalk, based on the success LinkedIn has enjoyed over time and the current stature of our founder/CEO Reid Hoffman (now Chairman). I thought I’d revisit it and share the story… First, you have to rewind mentally to early 2003. But keep in mind at this point Reid’s a first-time CEO.

Term Sheet 178

Term Sheet Silicon Valley Technical Review Social Network 178

Both Sides of the Table

JUNE 5, 2015

In the old days VCs funded off of a “pre-money” valuation. If you add the pre-money valuation (let’s say $8 million) to the amount of money you’re raising (let’s say $2 million) you get the post-money valuation. It’s very simple.

Pre-Money Valuation 150

Pre-Money Valuation Option Pool Post-Money Valuation Dilution 150

Both Sides of the Table

MAY 30, 2018

What was the post money on your last round (and how much capital have you raised)? It’s not uncommon for a VC to ask you how much capital you’ve raised and what the post-money valuation was on your last round. If you’re raising at $40 million pre then you might be out of their strike zone. is to start with just the data.

Valuation 324

Valuation Post-Money Valuation Pre-Money Valuation Cofounder 324

Berkonomics

DECEMBER 19, 2013

If you are an investor in an early stage venture, wouldn’t a dialog using these questions help greatly in defining and perhaps reducing your risk? When will the company run out of money if the development of the enterprise is at a slower rate than expected? How much skin do you and your fellow founders have in the game ?

Pre-Money Valuation 105

Pre-Money Valuation Liquidity Event Cofounder Valuation 105

The Startup Lawyer

FEBRUARY 4, 2011

But before your startup signs up and cashes that $[XX,000] check, your startup’s co-founders should sit down and evaluate the incubator’s offer. The following are some issues to consider and actions to take before accepting an incubator’s offer: (1) Calculate Valuation and Determine Value.

Incubator 105

Incubator Pre-Money Valuation Option Pool Advisory Board 105

Feld Thoughts

JULY 14, 2015

But instead of adding it on to the note or doing an equity round with a price, which could still be an early stage price but below the cap, they make the argument that since the company couldn’t raise a round, the company is worthless. So the new investment gets 60%, the founders get 39.9%, and the $1m of seed money gets 0.1%.

Recapitalization 70

Recapitalization Pre-Money Valuation Post-Money Valuation Angel Investor 70

Feld Thoughts

JULY 29, 2011

Finance Friday’s gets off the ground with today’s post by introducing you to an imaginary startup, the entrepreneurs that we’ll being following throughout the series, and their first challenges: splitting up the founders’ equity and addressing the case where one of the founders provides the initial seed capital for the business.

Equity 137

Equity Finance Pre-Money Valuation Denver 137

www.currentlyobsessed.com

MAY 28, 2010

I unexpectedly found that it was more helpful to think about the company valuation as an output variable in the fund-raising equation. It hardly deserves any attention at all in the early stages. For some closing thoughts, I’ll just add that: Valuation tends to be too much of a focus for most early stage companies.

Valuation 42

Valuation Channel Pre-Money Valuation Term Sheet 42

www.paulgraham.com

OCTOBER 23, 2010

And since a startup thatsucceeds ordinarily makes its founders rich, that implies gettingrich is doable too. A lot ofwould-be startup founders think the key to the whole process is theinitial idea, and from that point all you have to do is execute.Venture capitalists know better. Ideally you want between two and four founders.

Startup 105

Startup Cofounder Software Stock 105