Remove Cost Remove Definition Remove Partner Remove Pre-Money Valuation
article thumbnail

The Changing Structure of the VC Industry

Both Sides of the Table

Lower costs to start a business (95% reduction), many more companies created & funded by angels / seed. Limited Partners or LPs (the people who invest into VC funds) have taken notice as 2014 is by all accounts the busiest year for LPs since the Great Recession began. ” Stated simply – if you seed funded Uber at $4.5m

article thumbnail

3 Economic Rules Every Crypto Start Up Must Obey

Austin Startup

Our pre-money valuation for the seed round is 2 trillion dollars.” In 1937 (yeah, it takes that long to win the Nobel prize), Coase wrote a paper called the Nature of the Firm that revealed the fact that transaction costs are almost always material and do shape economic transactions. Why does this matter to crypto?

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

On Bubbles … And Why We’ll Be Just Fine

Both Sides of the Table

I’m no great scholar on bubbles – I have more interesting things to spend my time worrying about than the exact definition , but having been around a few I have at least given them intellectual consideration. In contrast, when the market is falling, by definition your investment is worth less THE DAY AFTER you have invested.

article thumbnail

When Should Startup Founders Discuss Valuation with Seed VCs?

View from Seed

Using NextView as an example, since we both seek to lead the seed round and only lead during this round, I’ve seen this trend manifest in one of two ways: In a priced round, the entrepreneur will often share their valuation ask (or a stated floor) for the pre-money valuation of their company much sooner in the process.

Valuation 336
article thumbnail

Shark Tank Season 4 episode 2 breakdown

Lightspeed Venture Partners

The right number to focus on is pre money valuation as that is how an investor is valuing the company before the investment. Post money valuation = Pre money valuation + Investment. post money valuation and a $1.35M pre money valuation.

article thumbnail

Shark Tank Season 4 Week 6 breakdown

Lightspeed Venture Partners

As you may have already seen , I’ve been breaking down the pitches on this season’s Shark Tank while wearing my work hat as a Managing Director at Lightspeed Venture Partners. This implies a pre money valuation of $1.045M. See my breakdown of week 2 for more on how to calculate pre money valuation.).

article thumbnail

Signaling Pricing Expectations Early in Seed Investment Discussions

Genuine VC

By communicating pricing expectations with potential lead investors, I mean sharing either an “ask” or even stated floor for the pre-money valuation of the company (with a priced preferred round) or explicitly stating a valuation cap (for convertible note round). But, also by definition, that just can’t be the case.

Valuation 136