Hunter Walker

AUGUST 8, 2023

At the time, this is last quarter and the stock market has trended upwards nicely since then (a potential leading indicator of private tech valuations), we all agreed venture portfolios were probably still 25-40% overvalued. Valuations. Sometimes these are led by outside investors and old ones will just take the impact and walk away.

Portfolio 98

Portfolio Cap Table LP Valuation 98

Both Sides of the Table

JUNE 5, 2015

In the old days VCs funded off of a “pre-money” valuation. If you add the pre-money valuation (let’s say $8 million) to the amount of money you’re raising (let’s say $2 million) you get the post-money valuation. I can boil it down to how this tension plays out. Those are the big three.

Pre-Money Valuation 150

Pre-Money Valuation Option Pool Post-Money Valuation Dilution 150

Both Sides of the Table

SEPTEMBER 18, 2014

Me: There is no rational explanation for valuations of A round companies by ANY objective financial measure. If you’re wildly successful early on or if they help you achieve a great valuation they actually pay a significant price for their eventual stock even though they took much more risk than a future investor and backed you early.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

David Teten

JANUARY 19, 2021

Yes, via conversion rights at a valuation cap. Yes, via conversion rights at a valuation cap. That said, Jonathan Bragdon, General Partner, Capacity Capital , points out that Flexible VC terms “twin” well with equity: providing less dilution while still providing investor assistance. . Flexible VC offers you this.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

ithacaVC

APRIL 25, 2012

If you want to scare off VCs, start your pitch with “we are looking to raise $X at a pre-money valuation of $Y” Stating how much you want to raise is fine and recommended. However, stating a desired pre-money valuation early in the process is not a good idea. Here is why.

Valuation 49

Valuation Pre-Money Valuation Liquidation Preference Preferred Stock 49

Gust

SEPTEMBER 17, 2014

Me: There is no rational explanation for valuations of A round companies by ANY objective financial measure. If you’re wildly successful early on or if they help you achieve a great valuation they actually pay a significant price for their eventual stock even though they took much more risk than a future investor and backed you early.

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

Both Sides of the Table

APRIL 25, 2011

Service as a bridge to a product business - One of the best ways for young startups to finance their business without any dilution is what I call “customer financing,&# which is mostly only possible in businesses that target businesses rather than consumers. You own the IP you create. He is the majority owner.

Silicon Valley 332

Silicon Valley IP Dividend Finance 332

VC Cafe

SEPTEMBER 26, 2010

It’s nice to have protected IP, but that will mostly matter later on in the event of an acquisition. For consumer web startups, the more traction you show, the better valuation you will get. Nivi Babak , VentureHacks: As much as possible while keeping your dilution under 20%, preferably under 15%, and, even better, under 10%.

Elevator Pitch 102

Elevator Pitch Incubator Technical Review Startup 102

Andrew Payne

JULY 7, 2010

And he cites a key seed fund advantage: they’re in early, at lower valuations, before the VCs. For ideas that have real technology, real IP, or some other non-replicable component, things get a lot more interesting, for both entrepreneurs and investors). However, my issue is not about entrepreneurs (or investors!)

IP 47

IP Angel Investor Dilution Valuation 47

Both Sides of the Table

FEBRUARY 25, 2010

million at a $15 million pre-money valuation. But we weren’t optimizing for dilution – we were building a $1 billion+ company and we wanted the runway to succeed. Morgan Stanley had proposed a higher valuation to let them in. million at a $15 million pre-money valuation. We ended up agreeing a term sheet for $16.5

Technical Review 301

Technical Review Term Sheet Due Diligence Venture Capital 301

www.paulgraham.com

OCTOBER 23, 2010

But its hard to raise money with an IP cloud over your head, becauseinvestors cant judge how serious it is. Before you consummate a startup, ask everyone about their previous IP history. They get the same kind of stock and get diluted the same amount in futurerounds. Now we needed to raise more to keep going.

Startup 105

Startup Cofounder Software Stock 105