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The Changing Structure of the VC Industry

Both Sides of the Table

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. pre-money valuation you certainly would want to exercise your right to continue investing if you had prorata rights.

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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. Ah, but today’s Internet companies have real revenue! So at GRP Partners we’re very active now.

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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. The company has gotten off to a fast start, $150k in revenue in the first two months, with all the marketing coming from social media.

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Valuations 101: Scorecard Valuation Methodology

Gust

In 2011, the valuation of pre-revenue, start-up companies is typically in the range of $1.5–$2.5 This method compares the target company to typical angel-funded startup ventures and adjusts the average valuation of recently funded companies in the region to establish a pre-money valuation of the target.

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How to Fund a Startup

www.paulgraham.com

There never has to be atime when you have no revenues. The fund managers, who are called"general partners," get about 2% of the fund annually as a managementfee, plus about 20% of the funds gains. Not all the people who work at VC firms are partners. Its the partners who decide, and they view things witha colder eye.

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Shark Tank Season 4 episode 2 breakdown

Lightspeed Venture Partners

The entrepreneurs had made $150k in revenue running classes for four months at a gym in New York, selling out the classes at $35/class. 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.