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Valuations 101: The Dave Berkus Method

Gust

We recently started a series of posts on establishing the pre-money valuation of pre-revenue startup companies for purposes of investment by seed and startup investors. Dave’s valuation model first appeared in a book published by Harvard’s Howard Stevenson in the middle nineties. Add to Pre-money Valuation.

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The Changing Structure of the VC Industry

Both Sides of the Table

pre-money valuation you certainly would want to exercise your right to continue investing if you had prorata rights. ” The pioneering fund of funds realize that their source of differentiation is much more about the latter than the former. ” Stated simply – if you seed funded Uber at $4.5m

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A VC’s take on the Season 5 premier of Sharktank

Lightspeed Venture Partners

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).

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8 Questions to Help Decide if You Should be Raising Money Now

Both Sides of the Table

You’re offered a $9 million pre-money to raise $3 million (e.g. 5 million raised at a $9 million pre-money valuation or 35.7% dilution), I would personally probably avoid the extra money because as an entrepreneur the dilution would put me out of my confort zone. 25% dilution).

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Shark Tank Season 4 Week 6 breakdown

Lightspeed Venture Partners

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.

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Vulture Capital: Why Early Stage VC Could Kill Your Startup

The Startup Magazine

In an industry known for its high turnover, a strong and differentiated company culture can help attract and retain talent. Before opening yourselves up to venture capital, you should have enough customers to demonstrate real value and present specific numbers to support your pre-money valuation. .

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What to Expect When You're Expecting Venture Capital Returns

This is going to be BIG.

Where I don't actually think that's the case is in growth rounds, which seem hyper competitive right now--and where the ability to differentiate yourself as an investor is limited. I assumed the following: Seeds are done as a $1mm round on a pre-money valuation of $5mm. Exits are $250mm. How about price?