Lightspeed Venture Partners

SEPTEMBER 21, 2013

Despite having over 500k downloads and making $450k in revenue over the last 21 months, he had only $185k left in the bank, which meant that he would be out of business in 90 days if he didn’t raise more money. pre money valuation and planned to use the money to market the app. pre money valuation).

Pre-Money Valuation 162

Pre-Money Valuation Valuation Dilution Distribution 162

Lightspeed Venture Partners

SEPTEMBER 23, 2012

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.

Pre-Money Valuation 158

Pre-Money Valuation Post-Money Valuation Valuation Dilution 158

Hippoland

AUGUST 31, 2018

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.

Pre-Money Valuation 90

Pre-Money Valuation Valuation Silicon Valley Early Stage 90

View from Seed

OCTOBER 21, 2014

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

Valuation Founder Seed Stage Angel Investor 336

Gust

APRIL 11, 2014

Apologies to my Chicago friends: This metaphor ignores the depth of the dish.) A growth company, by definition, is not a zero-sum enterprise. Suppose it raises $2 million at a $6 million pre-money valuation. ” I’ll take 0.01% of Google, thank you very much (worth a cool $36 million as of this writing).

Dilution 162

Dilution Equity Pre-Money Valuation Prospectus 162

Gust

SEPTEMBER 27, 2014

Take the time to read, cover to cover, The Definitive Guide to Raising Money from Angels , by the legendary Bill Payne. Luminaries contributing to the Gust video library include Dave McClure , David Hornik , Esther Dyson , Howard L Morgan , Josh Kopelman , Mark Suster and many others.

Angel Groups 159

Angel Groups Elevator Pitch Software Review Deal Flow 159

Lightspeed Venture Partners

OCTOBER 22, 2012

This implies a pre money valuation of $1.045M. See my breakdown of week 2 for more on how to calculate pre money valuation.). The pre money valuations on the two deals were close enough to be a wash, but the ability to accelerate the business at twice the speed would have been a real differentiator.

Pre-Money Valuation 101

Pre-Money Valuation Valuation Dilution Differentiation 101

Hippoland

AUGUST 31, 2018

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.

Pre-Money Valuation 48

Pre-Money Valuation Valuation Silicon Valley Early Stage 48

Tim Keane

JANUARY 12, 2010

An average of these ranges results in a pre-money valuation of about $4MM.   If similarly situated companies are seeing $3.5MM pre-money valuations, this might become the target valuation. An average of these ranges results in a pre-money valuation of about $4MM.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Gust

OCTOBER 20, 2011

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. In most regions, the pre-money valuation does not vary significantly from one business sector to another.

Valuation 146

Valuation Pre-Money Valuation Intellectual Property Technical Review 146

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). But, also by definition, that just can’t be the case.

Valuation 136

Valuation Pre-Money Valuation Angel Investor Syndicate 136

David Teten

FEBRUARY 9, 2015

I’ve listed below the points I recommend you cover when pitching your business to early-stage investors, including but definitely not limited to ff Venture Capital. If you are testing the market to see what terms you can get, just say, “We are targeting to raise $X at pre-money valuation of $Y.”

Venture Capital 60

Venture Capital Pre-Money Valuation Prospectus Early Stage 60

The Startup Lawyer

AUGUST 24, 2010

Do the convertible notes convert to equity on the maturity date, and if so, at what pre-money valuation ? What is the definition of “Liquidity Event&# ? Liquidity Event Payment : How much (e.g., 2X/3X, etc.)

Term Sheet 62

Term Sheet Pre-Money Valuation Liquidity Event Warrant 62

Gust

OCTOBER 12, 2011

Entrepreneurs generally prefer #2, provided it’s at a valuation that wouldn’t be absurdly dilutive given the amount of notes outstanding. It’s worth pausing on the definition of the phrase “at the noteholders’ option.” First, a word about the maturity date.

Finance 107

Finance Term Sheet Pre-Money Valuation Early Stage 107

venturehacks.com

OCTOBER 21, 2010

If you don’t keep your eyes on the option pool while you’re negotiating valuation, your investors will have you playing (and losing) a game that we like to call: Option Pool Shuffle You have successfully negotiated a $2M investment on a $8M pre-money valuation by pitting the famous Blue Shirt Capital against Herd Mentality Management.

Option Pool 68

Option Pool Pre-Money Valuation Dilution Warrant 68

This is going to be BIG.

MARCH 23, 2015

So whereas seed rounds five years ago may have been less than a million dollars on a pre-money valuation of three or four million, today''s seed is up and over a million and usually closer to two million, with post money valuations nearing $10 million.

Post-Money Valuation 60

Post-Money Valuation Valuation Pre-Money Valuation Seed Money 60

K9 Ventures

MAY 14, 2011

The incubators invest usually for an equity stake and buy equity at a extremely low valuation (for example, 7% for $15,000, which implies a pre-money valuation of less than $200,000). Super Angels : This is where my definition of a Super Angel differs from the press’ definition of a super angel.

Preferred Stock 125

Preferred Stock Seed Stage Incubator Early Stage 125

www.paulgraham.com

APRIL 28, 2010

If youre talkingto one VC and he finds out that you were rejected by another severalmonths ago, youll definitely seem shopworn. The angel agrees to invest at a pre-money valuation of $1 million.The company issues $200,000 worth of new shares to the angel; ifthere were 1000 shares before the deal, this means 200 additionalshares.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

Rob Go

NOVEMBER 30, 2012

Given this definition, we continue to see dedicated seed funds providing strong benefits for founders, including: Minimal signaling risk at the next round of financing. This means greater focus on ownership, pre-money valuations, and dollars in.

Seed Stage 55

Seed Stage Pre-Money Valuation Dilution Early Stage 55

thestartuplawyer.com

FEBRUARY 24, 2010

Startup legal advice is hard to come by, and you're definitely providing some valuable info. Startup legal advice is hard to come by, and you're definitely providing some valuable info. He obviously never launched a startup and got shafted by a co-founder.

Cofounder 40

Cofounder Founder Preferred Stock Startup 40

dondodge.typepad.com

JANUARY 15, 2011

So they will give you a pre-money valuation somewhere around the amount you raise. Sounds strange, but it usually works out that if you are raising $2M the VCs will value your company at $2M pre-money, and $4M post money so they end up with 50% of the stock. Then your 4% of the stock is worth $20M to $40M.

Equity 40

Equity Employee Dilution Valuation 40

This is going to be BIG.

SEPTEMBER 7, 2012

If you're investing at pre-money valuations in the low to mid single digits, then how much worse can the next round even get? If I invest at a 4 pre and the next round investor says, "I'll do this, but only at a 2 pre," then we're already effed and something went wrong. Down from what?

Later Stage 99

Later Stage Down Round Pre-Money Valuation Early Stage 99