View from Seed

OCTOBER 21, 2014

As the seed-stage startup fundraise process has received more transparency in recent years, ranging from published advice on how to raise seed capital to increased availability through AngelList, Funders Club, and various accelerator programs, I’ve noticed another trend emerging. Lower-Than-Market Value.

Valuation 336

Valuation Founder Seed Stage Angel Investor 336

Genuine VC

JULY 30, 2012

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).

Valuation 136

Valuation Pre-Money Valuation Angel Investor Syndicate 136

YoungUpstarts

NOVEMBER 13, 2012

Just 18 months after this photo sharing program and social network was launched, Facebook offered to purchase Instagram for $1 billion in cash and stock. The deal closed only four months later in August of 2012. Negotiating a different deal structure could have prevented the price from dropping. . - Low barrier to entry.

IPO 162

IPO Exit Strategy San Francisco Startup 162

Entrepreneurs-Journey.com by Yaro Starak

JANUARY 21, 2011

I attended the University of Michigan in Ann Arbor, a top ten business program year-in year-out and love to pretend to brag about it. Investment in small businesses require knowledge of transactions and the related aspects such as business valuation, due diligence, deal structuring / financing, contracts, etc.

Internet 80

Internet Technical Review Stock Due Diligence 80