article thumbnail

Equity for Early Employees in Early Stage Startups

SoCal CTO

Early Employees To help with this discussion, let me start with a definition of "early employee." " Steve Blank divides the individuals associated with startups as: Founders Early Employees (Employees # 1-25) Later Employees (Employees # 26-125) The reality is that the definition of founder and employee is not clear.

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. pre-money valuation you certainly would want to exercise your right to continue investing if you had prorata rights. We’re all socially connected (so great businesses spread faster).

Insiders

Sign Up for our Newsletter

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

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?

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

A VC’s take on the Season 5 premier of Sharktank

Lightspeed Venture Partners

The smartphone app that enables this is free but it costs $2.49 to fund the company at a $6M post money valuation from a number of investors including Selena Gomez. pre money valuation and planned to use the money to market the app. pre money valuation). pre money valuation.

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

Pre-seed is the new seed

Hippoland

Another consideration here is that in the minds of pre-seed investors (who are very often small funds and will be allocating most of their capital in the first round or two), valuation matters a lot more to them than a larger fund who might invest in you at this stage as an option for later.