Both Sides of the Table
SEPTEMBER 15, 2022
When you look at how much median valuations were driven up in the past 5 years alone it’s bananas. Median valuations for early-stage valuations tripled from around $20m pre-money valuations to $60m with plenty of deals being prices above $100m.
SoCal CTO
SEPTEMBER 27, 2011
I was asked by a reader how much equity he should give out to early employees and to service providers in a very early stage startup. Founders vs. Early Employees To help with this discussion, let me start with a definition of "early employee." I'll get to service providers in a later post.
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YoungUpstarts
OCTOBER 24, 2013
“The reality is that there has not been a reliable, simple, or cost-effective way to calculate an early stage company’s valuation – which is why so many entrepreneurs and angel investors get it wrong,” says Alan Lobock, co-founder of Worthworm.
Both Sides of the Table
JULY 22, 2010
I couldn’t understand why they wanted so many options until a friend pointed out that this just lowered their “true&# pre-money valuation (they also asked for some sharp elbowed terms in the deal). So let’s start calling the term sheet listed pre-money valuation as the “nominal&# pre-money valuation.
Both Sides of the Table
MAY 28, 2018
There’s a quick litmus-test conversation any early-stage VC will have with the founder and it’s one that you should be as prepared for as your elevator pitch. It goes something like this … VC: “How much money are you raising?” Every VC knows that the amount you raise is often a proxy for your valuation.
Both Sides of the Table
SEPTEMBER 10, 2021
A-Rounds used to be $3–7 million with the best companies able to skip this smaller amount and raise $10 million on a $40 million pre-money valuation (20% dilution). These days $10 million is quaint for the best A-Rounds and many are raising $20 million at $60–80 million pre-money valuations (or greater).
Both Sides of the Table
JUNE 5, 2011
Early-stage investors in technology startups are only looking for growth-oriented companies that can achieve an “exit&# someday – either via selling your company to a larger company or via an IPO. So rounds tend to be “range bound&# where the top end of the valuation spectrum often being done in boom markets (i.e.
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