David Teten

AUGUST 7, 2019

The reverse also holds: a Value investment can become Momentum, and then follow with a down round. Today, some Momentum-centric venture capital investors have high paper returns. The Momentum model depends in part on more and more venture capital being readily available.

Venture Capital 60

Venture Capital Valuation Stock NDA 60

Both Sides of the Table

FEBRUARY 4, 2016

” There are a lot of data points that one can observer to get a sense of the venture capital markets – both LP fundings into venture and VC financings of startups. They point to some widely known facts: financings & valuations are up massively over the past 7 years and non-VC money has entered the system.

LP 150

LP Valuation Burn Rate Pre-Money Valuation 150

VC Cafe

FEBRUARY 27, 2024

What’s the difference between an angel round and pre-seed round and why do I believe we’ll see more pre-seed rounds taking place in 2024? While the answers are somewhat semantic, the pre-seed funding round is making a comeback in 2024 startup financing. Seed is about showing initial product market fit.

Valuation 186

Valuation Software Review Generative AI Technical Review 186

Berkonomics

JUNE 8, 2017

The subject of raising money is critical to many businesses and a passing option to others, depending upon the capital efficiency of the enterprise. And even with the significant cost of credit card debt, many entrepreneurs aggressively use existing cards to finance a startup. For you who fit that description, nice work.

Private Equity 106

Private Equity Valuation Cap Table Accredited Investor 106

Berkonomics

MARCH 28, 2019

Sooner or later you may need to seek venture capital and accommodate the needs of the venture community in negotiating the terms of an investment. This is only a minor problem in that both forms can convert easily into ‘C’ corporations at low cost and little consequence. What VC’s can and cannot do.

Limited Liability Company 48

Limited Liability Company Post-Money Valuation Valuation Down Round 48

Growthink Blog

MAY 23, 2011

The typical wisdom regarding the appropriate financing course for a new company goes as follows: 1. This venture capital financing - usually between $3 and $10 million - is the first of a number of rounds of outside investment over a period of three to five years. There are a lot of dark, hard days.

Angel Investor 112

Angel Investor Venture Capital Sweat Equity Cram Down 112

Gust

SEPTEMBER 17, 2014

Me: So, you raised venture capital? We raised a seed round. You’ll find out the minimum when the next round is raised. It’s like we need a finance 101 course for entrepreneurs. Him: But when I raised my first round we didn’t know how to price the company. Him: We didn’t want to price our round.

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

Berkonomics

APRIL 6, 2012

Sooner or later these businesses will have to seek venture capital and accommodate the needs of the venture community in negotiating the terms of an investment. This is only a minor problem in that both forms can convert easily into ‘C’ corporations at low cost and little consequence.

Limited Liability Company 79

Limited Liability Company Post-Money Valuation Valuation Down Round 79

Both Sides of the Table

SEPTEMBER 27, 2010

There are real changes in the venture capital industry and it would have been fun to talk about them. What micro VCs need to consider is what happens when several of your companies want to grow and require VC financing? Or when the economy turns downward and they all need financing extensions? Answer: Not much.

Liquidity Event 308

Liquidity Event Silicon Valley Seed Stage Finance 308

Both Sides of the Table

JUNE 5, 2016

In other words, it isn’t that VCs suddenly got smart, it’s that the costs of starting a company went down dramatically. Non VC Growth Rounds. The market eventually slowed down. Some examples There was an A-prime round of a high-profile deal coming together. 3VCs agreed to fund an inside round and cut costs.

Venture Capital 150

Venture Capital Silicon Valley Burn Rate LP 150

Berkonomics

JANUARY 20, 2010

This post will be perhaps a bit longer than usual, but certainly of great interest for those with interest in or have need for more capital… This stage is critical to many businesses and a passing option to others, depending upon the capital efficiency of the enterprise. For you who fit that description, nice work.

Private Equity 69

Private Equity Valuation Cap Table Accredited Investor 69

abovethecrowd.com

APRIL 20, 2016

Why the Unicorn Financing Market Just Became Dangerous…For All Involved. In February of last year, Fortune magazine writers Erin Griffith and Dan Primack declared 2015 “ The Age of the Unicorns ” noting — “Fortune counts more than 80 startups that have been valued at $1 billion or more by venture capitalists.”

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Both Sides of the Table

FEBRUARY 14, 2016

Put simply, it’s really hard to build a strong company when all of your competitors are giving away free s**t fueled by venture capital chasing winner-take-all returns. But if you’re a seed investor and you’re worried that the A-round won’t get done if your post-money is too high you suddenly start paying less.

Valuation 150

Valuation Down Round Startup Later Stage 150

Both Sides of the Table

OCTOBER 18, 2015

There is a lot of uncertainty about the state of the private, high-growth technology markets and the venture capital markets that underpin them. Technology riches yield bumper crops in venture capital with new firms and new largesses – the rewards of LPs rediscovering our asset class. 25% “down rounds?

IPO 150

IPO Venture Capital LP SEC 150