View from Seed

SEPTEMBER 14, 2021

Warning – this assumes some basic knowledge of VC performance metrics. Or is there a major disconnect between a portfolio’s valuations and the actual dollars returned to LPs? Both early- and late-stage startup valuations are currently elevated. For a primer, I would recommend refreshing yourself here.

Valuation 295

Valuation Pre-Money Valuation Distribution Early Stage 295

The Next Web

SEPTEMBER 13, 2013

Many Asian entrepreneurs tell me that they want to raise funds from Silicon Valley firms because they perceive the valuations to be higher. But the problem with this is that most VCs in the Valley, especially early stage ones, only like to invest in companies that are within driving distance from their offices.

Asia 132

Asia Silicon Valley India Term Sheet 132

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

View from Seed

SEPTEMBER 14, 2021

Warning – this assumes some basic knowledge of VC performance metrics. Or is there a major disconnect between a portfolio’s valuations and the actual dollars returned to LPs? Both early- and late-stage startup valuations are currently elevated. For a primer, I would recommend refreshing yourself here.

Valuation 156

Valuation Pre-Money Valuation Distribution Early Stage 156

Both Sides of the Table

SEPTEMBER 18, 2014

There were no metrics. Him: On metrics. Me: There is no rational explanation for valuations of A round companies by ANY objective financial measure. If we priced it based on any metrics your company would likely be worth less than 7 figures at your A round. People seem concerned about valuation. Me: More dilution?

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Up and Running

JULY 14, 2015

An early stage startup will want to access funds to help further validate its business proposition. Any investor will put their valuation on your business based on a number of factors, including looking at important metrics for your business, patents, or assets. Should you ever raise more than you need?

Technical Review 60

Technical Review Valuation Due Diligence Finder 60

Gust

SEPTEMBER 17, 2014

There were no metrics. Him: On metrics. Me: There is no rational explanation for valuations of A round companies by ANY objective financial measure. If we priced it based on any metrics your company would likely be worth less than 7 figures at your A round. People seem concerned about valuation. Me: More dilution?

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

David Teten

NOVEMBER 10, 2011

This is designed to be a simple end-to-end financial model for an early-stage startup. The model outputs standard financial statements and key operating metrics based on a wide range of user inputs, and is highly customizable and entirely transparent. Download the template financial model in Excel here.

Balance Sheet 154

Balance Sheet Startup Equity Valuation 154

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.

Seed Stage 120

Seed Stage Syndicate Syndication Dilution 120

Rob Go

FEBRUARY 29, 2016

For early stage companies and for our new investment activity: I’m very bullish. There is always a market for strong companies, but you just may take more dilution than you otherwise would if you raise capital, or you may raise less for the same dilution. Here’s how I’d break it down.

Marketing 28

Marketing Dilution Burn Rate Seed Stage 28

BeyondVC

JUNE 11, 2007

It is quite simple – the dollars are relatively cheap compared to an equity financing and extending your runway to hit more critical milestones means a potentially better valuation for your company down the road. A typical structure for an early stage deal could be an equity raise of $3-5mm with another $1-2.5mm of debt.

Intellectual Property 60

Intellectual Property Covenant Warrant Equity 60

abovethecrowd.com

APRIL 20, 2016

One key to this population growth has been the remarkable ease of the Unicorn fundraising process: Pick a new valuation well above your last one, put together a presentation deck, solicit offers, and watch the hundreds of million of dollars flow into your bank account. By January of 2016, that number had ballooned to 229.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

NZ Entrepreneur

JULY 8, 2019

In the first of a three part series on early stage business investment, we asked serial entrepreneur and investor Josh Comrie what three key things New Zealand entrepreneurs must get better at when it comes to seeking angel investment. So, I went deep (currently sitting at 26 different early-stage ventures). Valuations.

New Zealand 42

New Zealand Entrepreneur Valuation Dilution 42

Seeing Both Sides

JANUARY 13, 2015

Some VCs prefer investing at the earliest stages and then cycle off the board of directors. Others prefer to come in at the later stages, post product-market fit, and not have to deal with the risk and roller coaster of the early stages. Financing: Do we have the metrics to support a growth or mezzanine round?

Mezzanine 20

Mezzanine IPO Finance Business Model 20

Up and Running

DECEMBER 9, 2014

Maybe you are wondering which metrics to track, or whether or not you should take out a loan for your business. Which metrics do you most rely on to understand your business itself. The question is what metrics do you most rely on to understand your business’s health? What specific metrics should they be monitoring?

Small Business 95

Small Business Finance Forecast Metrics 95