thebarefootvc

MAY 8, 2012

The best VCs are the ones that balance their optimism, vision and enthusiasm for startups with realism based on very real constraints (the primary one being his/her own time, but also includes market development and exit timing). As an entrepreneur at heart, I often innately grasp the potential of entrepreneurs and ideas that I meet with.

Venture Capital 78

Venture Capital Syndicate Syndication Bandwidth 78

Gust

OCTOBER 12, 2011

During the summer of 2010, I developed a workshop, A New ACEF Valuation Workshop for Angels and Entrepreneurs. To provide some reference points, I surveyed thirteen angels groups in North American to determine their recent experience in negotiating the pre-money valuation of pre-revenue companies. Current Average. up slightly.

Angel Groups 125

Angel Groups Valuation Pre-Money Valuation St. Louis 125

View from Seed

APRIL 30, 2015

Especially in the early stages, so much about the company may change in how they think about product or go-to-market — and change multiple times — before raising an institutional round. NVV: Let’s talk about the seed stage specifically. But the costs are definitely there.

Term Sheet 120

Term Sheet Equity Startup Seed Stage 120

Gust

OCTOBER 20, 2011

In 2011, the valuation of pre-revenue, start-up companies is typically in the range of $1.5–$2.5 Scorecard Valuation Methodology. 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.

Valuation 146

Valuation Pre-Money Valuation Intellectual Property Technical Review 146

Feld Thoughts

AUGUST 10, 2010

In this case neither Niel (nor I) had any interest in creating a traditional syndicate to fund the company. We did a second financing by ourselves at an increased valuation – this was the “Series B&#. The meat of the funding story follows: “Of course coming up with the idea is the easy part.

Syndicate 120

Syndicate Syndication Angel Financing Finance 120

Professor VC

APRIL 1, 2010

It had a good mix of viewpoints with east ( James Geshwiler, Common Angels ) and west coast (yours truly) angels, early stage venture capitalist ( Jason Mendelson, Foundry Group ), and a couple of attorneys ( Dan Hansen and Mario Rosati ). It is obviously too late to dial-in to the call, but you can still order a CD of the session.

Term Sheet 32

Term Sheet Angel Investor San Jose Venture Capital 32

View from Seed

JUNE 30, 2015

As a founder, I think it’s easier to talk to potential investors about where they invest across the lifecycle of a company (whether it’s truly early-stage/early lifecycle, for instance), versus round stages like seed, series A, etc. Almost all VCs actually invest across this spectrum. Some still happen fast.

Seed Stage 120

Seed Stage Syndicate Syndication Dilution 120

David Teten

DECEMBER 3, 2019

This provides us more time to develop meaningful relationships with prospects and customers. Data companies focused on early-stage startups include Aingel , fundsUP , Preseries , PredictLeads , and Sploda. Tribe Capital has developed A Quantitative Approach to Product Market Fit. . 3) Raise capital. 7) Negotiate .

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Both Sides of the Table

AUGUST 1, 2010

There is a structural reason that VCs are investing at early stages, 2. Like Brad Feld I’m syndication agnostic but I have a slight preference toward working with others. I’ve written about it myself (Is VC Seed Funding Dead?) and (Is There Really a Signaling Problem with VC Seed Funding?).

Post-Money Valuation 298

Post-Money Valuation Term Sheet Warrant Partner 298

Professor VC

JANUARY 17, 2008

One of my comments was that we would likely see more institutionalization of angel groups and syndication of deals among groups. Another comment which probably deserves more discussion is around valuation. He also said they typically only invest at a $1 million pre-money valuation or less. My facebook can beat up your facebook.

Pre-Money Valuation 28

Pre-Money Valuation Angel Investor Angel Groups Valuation 28

Tim Keane

APRIL 12, 2006

What development stage is your primary business focus? Where along the journey of seed-early-growth does the group like to invest? (Is this stage when the company can justify a higher. valuation than the previous round. If the investors ideal size is smaller than your need, you ought to ask about syndication.

Entrepreneur 60

Entrepreneur Valuation Sweat Equity Common Stock 60

www.paulgraham.com

APRIL 28, 2010

Then you can gradually transformyourself from a consulting company into a product company, and haveyour clients pay your development expenses. An advantage of consulting, as a way to develop a product, is thatyou know youre making something at least one customer wants. Another concept we need to introduce now is valuation.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

Professor VC

JUNE 20, 2011

We managed to pull together an angel syndicate and close $450K on 9/30 after working the phones the last few days and anxiously waiting for signature pages to show up on the fax machine and wire confirms to hit the bank account. offering to invest $75K if we could find another $250K by September 30, 2005.

San Jose 28

San Jose Angel Investor Term Sheet Venture Capital 28

Feld Thoughts

JULY 14, 2015

Assuming equity is raised at or above that cap, the total dilution, before the new money, is 16.6% (equivalent to an equity financing of $1m at a $6m post money valuation. The term sheet converts all the convertible debt into a post-money valuation of $100, essentially making the convertible debt worthless. Sure – it happens.

Recapitalization 70

Recapitalization Pre-Money Valuation Post-Money Valuation Angel Investor 70

Austin Startup

AUGUST 1, 2017

This is most clearly highlighted in the “unicorn” boom we all saw over the past few years, where founders raised very large rounds, with terms very onerous to the underlying common stock, hoping they could eventually justify billion dollar valuations to skeptical acquirers or public market investors. Angels/Seed Funds v.

Liquidation Preference 48

Liquidation Preference Common Stock Valuation Silicon Valley 48

Feld Thoughts

AUGUST 1, 2018

The $750 million fund combines all of our prior fund strategies – our early stage, early growth, and partner fund investments – into a single fund. For historical reference, our early-stage funds (FG 2007, FG 2010, FG 2013, and FG 2016) are all $225 million in size. We now have seven equal partners.

Syndicate 17

Syndicate Syndication IRR Canada 17