Conversion Metrics Post-Money Valuation Revenue 
Both Sides of the Table
JUNE 5, 2011
I wrote this because over the last decade I’ve seen a destructive cycle where otherwise interesting companies have been screwed by raising too much money at too high of prices and gotten caught in a trap when the markets correct and they got ahead of themselves. I thought I’d post on one of the topics before hand.
Both Sides of the Table
FEBRUARY 15, 2016
When you raise larger rounds there is more “due diligence,” which includes: calling customers, looking at financial metrics, doing cohort analysis (looking for trends like changes in churn rates), evaluating competitor positioning and understanding more of the competency of your executive team.
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Both Sides of the Table
SEPTEMBER 18, 2014
There were no metrics. Him: On metrics. Revenue multiple? If we priced it based on any metrics your company would likely be worth less than 7 figures at your A round. These are all real conversations. What if when you have that conversation you don’t agree? So a convertible note was easier.
Gust
SEPTEMBER 17, 2014
There were no metrics. Him: On metrics. Revenue multiple? If we priced it based on any metrics your company would likely be worth less than 7 figures at your A round. How do you think they’ll feel if your next round is at a $50 million post money valuation and their hard-earned $25,000 is worth 0.05% of your company?
betashop.com
OCTOBER 8, 2012
1 year later we sat down and had an honest conversation with ourselves and realized that our One Thing, the thing we were most passionate about, that we could realistically be the best in the world at, and that was a huge untapped market opportunity was: Design. 10M post-money valuation = $100M target. Connect With Me.
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