View from Seed

NOVEMBER 18, 2020

Every fundraise process should start internally with the financing needs and goals that the business is looking to hit. Every ask implicitly suggests a valuation range. Conversely, a series A with a $6M ask suggests a lower valuation. Because every ask suggests a valuation, make sure it is market appropriate. That said….

Valuation 418

Valuation Founder Conversion Demand 418

YoungUpstarts

OCTOBER 28, 2015

This article highlights their advice on issues ranging from financing to patent trolls: While startups may believe lawyers are too costly, working with one early on avoids potentially serious problems later. Entrepreneurs need to hit a happy medium with backers, not giving away too much but not making overly aggressive demands.

Convertible Security 100

Convertible Security IP Technical Review Software Review 100

Both Sides of the Table

JUNE 5, 2011

2: As expected at least one person accused me of writing this post because I want to see lower valuations. As the risks below get eliminated the higher the valuation investors are prepared to pay. So rounds tend to be “range bound&# where the top end of the valuation spectrum often being done in boom markets (i.e.

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336

ReadWriteStart

JUNE 1, 2020

In very few specific cases, depending on the nature of the business, the business model might demand a considerable gestation period or extensive research and development. If you are facing any problem you can always check out this: Business Loan vs. Equity Financing. Point number 3: Never raise money with an increased valuation.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

YoungUpstarts

JUNE 16, 2020

Business valuation is defined as a way to determine the overall economic value of a company , and is a necessary component of a sound business plan and strategy. Any of these situations will demand a valuation to determine current and future projected value. . Three Methods of Valuation. Life happens to all of us.

Valuation 162

Valuation CPA Software Review Revenue 162

The Equity Kicker

DECEMBER 6, 2013

Venturebeat reported yesterday that US startup valuations have reached ten year highs. You can see from the charts above that median valuations have been increasing at all stages from seed through to Series D or later.

Valuation 162

Valuation Venture Capital Startup Europe 162

Tim Keane

JANUARY 12, 2010

Term-sheets and Valuations: Thinking about Negotiations.   I’ve sat down with entrepreneurs and a copy of a term sheet guide I like [ “Term Sheets & Valuations - A Line by Line Look at the Intricacies of Venture Capital Term Sheets & Valuations ” by Alex Wilmerding, Aspatore Press.] The Valuation Question.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

YoungUpstarts

MARCH 11, 2015

With the daily demands of running a business along with the financial pressures and challenges inherent in early-stage companies, a business valuation may not be the first thing an entrepreneur thinks of when he awakes each morning. When does a startup company need a business valuation? by Janet Chase, Kaufman Rossin.

Valuation 100

Valuation Stock Options CPA Merger 100

Berkonomics

AUGUST 24, 2023

We have previously made the case that professional investors demand more in the form of restrictive covenants and lower valuations. Without the VC guidance there would have been little opportunity to even dream of a billion-dollar valuation goal. This statement could be considered controversial.

Covenant 118

Covenant Angel Investor Valuation Later Stage 118

Startup Professionals Musings

APRIL 11, 2021

Later, when your venture is trying to close on financing, or even going public, that forgotten partner surfaces, demanding their original share. Many startups delay incorporation until the first formal round of financing, which is too late. Trouble with the IRS over Founders stock value.

Cost 363

Cost Non-Compete Accredited Investor Cofounder 363

thebarefootvc

JANUARY 27, 2014

Do I think we are in a valuation bubble? I think that later stage valuations are frothy (for reasons I explain below) while earlier stage valuations are starting to stabilize from previous highs (with the exception of the superstar serial entrepreneur) - turns out scaling in a sea of competition (both startup and entrenched) is not so easy.

Technical Review 63

Technical Review Valuation Venture Capital Investment Bankers 63

Both Sides of the Table

JULY 29, 2010

We received so much positive feedback from our This Week in Venture Capital show walking through valuation calculations & term sheets that we decided to do a Q&A show this week to address topics that entrepreneurs want to learn about. The best thing to get is a “right sized&# valuation. A: It’s not best.

Venture Capital 282

Venture Capital Term Sheet Valuation Stock Options 282

Startup Professionals Musings

NOVEMBER 13, 2021

Until I read the classic book “ The Business of Sharing, ” by Alex Stephany, who founded JustPark (current valuation estimated at £80M), I too had no idea of the scope of opportunities, and the 300 or more players already out there. Community means more than supply and demand. Assets need to move in a community of engaged users.

Cuba 316

Cuba Venture Capital Community Valuation 316

Startup Company Lawyer

MARCH 14, 2010

After the recent announcement of the Series Seed Financing documents by Marc Andreesen, Brad Feld points out that there are now four sets of “open source&# equity seed financing documents: TechStars Model Seed Funding Documents (by Cooley). Y Combinator Series AA Equity Financing Documents (by WSGR). under $500K).

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

YoungUpstarts

JUNE 20, 2016

A 2012 study done by IBISWorld revealed that VDRs experienced a steady growth of about 17 percent annually as a result of technological advancements as well as the growth of global demand for these storage services. The switch from PDRs to VDRs resulted in deal cycles and increased valuations. What are Virtual Data Rooms? Accounting.

Software Review 100

Software Review Technical Review Due Diligence Security 100

ithacaVC

NOVEMBER 14, 2014

I have written about startup valuations previously. If you are advising startup founders, I strongly suggest having them read all 4 of the posts to get the lay of the startup valuation land. There’s a reason it’s so difficult to figure out – valuations have little basis in reality for early stage companies.

Valuation 69

Valuation Startup Down Round Early Stage 69

David Teten

JANUARY 19, 2021

From RBI, Flexible VCs borrow the ability to reap meaningful returns without demanding founders build for an exit. Yes, via conversion rights at a valuation cap. Yes, via conversion rights at a valuation cap. Santa Clara University shares their demand dividend structure. . Flexible VC: Compensation-based.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Both Sides of the Table

OCTOBER 12, 2014

All the confusion you hear from friends or read in the press is related to this nuance that early investors demand prorata rights and sometimes fight like hell to maintain them (Facebook problem) and sometimes prefer not to take them (overvalued company that they perceive isn’t doing as well as new investors coming in think).

Technical Review 336

Technical Review Later Stage Early Stage LP 336

Version One Ventures

OCTOBER 15, 2020

Let’s now explore the major developments and ultimate use cases for the Lightning Network in two categories: A) payments/finance and B) Web3. . Use Case I: Payments and Finance . In this post, I outlined why the Lightning Network matters and recent developments around its two major use cases: payments/finance and Web3. .

Networking 168

Networking Global OTC Security 168

ReadWriteStart

JANUARY 29, 2023

According to Jungle Ventures, Southeast Asia’s technology startups had a combined valuation of $340 billion in 2020. The pandemic has significantly increased the demand for access to digital services. Now the pandemic has settled, startups in the region should meet the demands of millions of new customers. billion in 2018.

Asia 171

Asia Indonesia Silicon Valley Malaysia 171

Genuine VC

JULY 19, 2010

I think that the number of players in this devloping class of what I’d call “Micro VCs” will continue to increase over the coming years: the model fits into an opportunity on the capital supply side, as well as more importantly becomes the right product for many entrepreneurs on the demand side. Structural.

Seed Stage 175

Seed Stage Technical Review Dilution Offshore 175

ithacaVC

NOVEMBER 28, 2012

On October 17th I posted on seed and early stage startup valuations. This morning I read a post by Marty Zwilling on startup valuations. His post on startup valuations lists the following rules of thumb (i.e., Find “comparables” who have received financing (market approach). The better the team, the better the valuation.

Valuation 69

Valuation Intellectual Property Startup Early Stage 69

The Startup Magazine

JUNE 22, 2020

The main factors affecting the real estate market are interest rates , economic growth, affordability of properties, speculative demand, and the overall supply of properties available. Demand for properties is dependent upon the income of a business or household. When economic growth is strong, demand is up and prices are up as well.

Management 93

Management Valuation Finance Demand 93

Feld Thoughts

MARCH 24, 2017

In general, these investments were rarely competitive at the time of their first financing. We know many firms that build portfolios with great logos by buying into companies at later stages and higher valuations. FC’s portfolio is made up exclusively of seed stage investments at seed valuations.

Founder 75

Founder LP Technical Review Seed Stage 75

The Startup Magazine

DECEMBER 7, 2023

The finance industry is laden with intricacies. Core Tactics of Risk Management Companies To navigate the turbulences of the finance industry, institutions increasingly lean on risk management companies. The ever-present challenges demand proactive measures in managing risk.

Security 136

Security Management Forecast Finance 136

Both Sides of the Table

NOVEMBER 14, 2017

This financial leader could well have come through the finance org at another startup or at a larger company but they often also can come from strategy consulting (Bain, BCG or McKinsey) or through investment banking (Goldman Sachs, Morgan Stanley, etc.). and we were met with weak demand, slow growth and high costs.

Operations 286

Operations New York City Technical Review Startup 286

The Next Web

FEBRUARY 27, 2014

One of the questions I get, more often than not, is what is the appropriate valuation of my business. This is typically in conjunction with an upcoming financing or pending takeover offer. Supply and demand. your equity in a hot new patented technology business), the higher the demand (e.g., The more scarce a supply (e.g.,

Valuation 167

Valuation Forecast Seed Stage .Net 167

Both Sides of the Table

JANUARY 22, 2014

I’ve been involved with SaaS companies with VCs who don’t understand demand generation, lead qualification, sales coverage ratios, sales forecasting or frankly when deals should be inside sales vs. outside sales. It felt like there was a wavelength with management and somebody wasn’t on it.

Portfolio 364

Portfolio Chicago Sales Incubator 364

YoungUpstarts

OCTOBER 23, 2017

PC and mobile interfaces dynamically display portfolio valuations and exposures, along with system-generated investment recommendations tailored to a specific client’s financial goals and risk appetite. Morgan Stanley predicts that Robo Advisors will manage $6.5 trillion by 2025, about 5% of the world’s wealth. Underwriting.

Technical Review 154

Technical Review Artificial Inteligence Software Review IPO 154

YoungUpstarts

JANUARY 12, 2015

But, business analysts are always in demand, and more and more companies rely on them for long-term planning, valuation, and integration with technology systems. Some companies prefer you to have a Masters of Science in Finance, master of Accounting, or and MBA. It sounds so nondescript. Here’s how to get started down that path.

Demand 100

Demand Valuation Finance Management 100

Startup Professionals Musings

FEBRUARY 2, 2019

Until I read the classic book “ The Business of Sharing, ” by Alex Stephany, who founded JustPark (current valuation estimated at £33M), I too had no idea of the scope of opportunities, and the 350 or more players already out there. Community means more than supply and demand. Assets need to move in a community of engaged users.

Cuba 246

Cuba Venture Capital Community Valuation 246

Up and Running

JUNE 14, 2017

Others believe in the start small, grow strong approach: build a small version of the app, test user demand, and then take it from there. This could have validated their interest and provided me with a tangible proof of demand. They matched buyers with these businesses manually on-demand.

Technical Review 96

Technical Review Distribution Redemption Demand 96

Growthink Blog

APRIL 15, 2015

Now given that the company has yet to even come close to breaking even, this can be viewed as either a great validation of Domo''s business model, or as more evidence of the “Bubble Mania” of the current technology financing landscape and a screaming signal to get out while you still can. And investors just can''t enough of them.

Valuation 48

Valuation Venture Capital Finance Acquisition 48

Gust

OCTOBER 21, 2011

To account for scenarios in which the startup is acquired before it has a chance to complete a priced equity financing round, most term sheets and deal documents contain a “ change in control ” provision. Suppose the notes converted as if the acquisition were an eligible financing round. Most would agree this is not a fair outcome.

Finance 79

Finance Pre-Money Valuation Term Sheet Liquidity Event 79

Startup Professionals Musings

MARCH 20, 2013

In finance, a bubble is too much money chasing assets, greater asset production and a herd mentality. In finance, “this time is different” is the beginning of a new bubble. Supply and demand ignored. We all believe that supply and demand meet to create stable prices (reflexive). High valuation, low profit.

Demand 224

Demand Green Finance Government 224

Gust

OCTOBER 12, 2011

Last week , we took the plunge and began dissecting an example term sheet for a convertible debt financing round piece by piece. In Part II, we looked at the mandatory conversion language that is at the heart of any convertible debt financing. First, a word about the maturity date.

Finance 107

Finance Term Sheet Pre-Money Valuation Early Stage 107

This is going to be BIG.

MAY 9, 2022

For these companies, the next round might not be at the valuation they wanted, but it’s still going to be there—because despite what you hear about pullbacks, there is still far more money chasing far rarer good ideas. It was super hard to get any kind of financing before, and it will remain so. You should be all good. Mediocre deals?

Stock 97

Stock Marketing Valuation Later Stage 97