View from Seed

APRIL 30, 2015

Below, we talk to Glen Mello , Managing Director of Silicon Valley Bank’s accelerator team in Boston. NVV: Is there any dilution? GM: There are warrants attached to these loans, but it’s a pretty nominal dilution and pretty low cost of capital for an entrepreneur, which is usually part of the appeal.

Term Sheet 120

Term Sheet Equity Startup Seed Stage 120

Both Sides of the Table

SEPTEMBER 10, 2021

The legends of Silicon Valley?—?two 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). Today you have funders focused exclusively on “Day 0” startups or ones that aren’t even created yet. two founders in a garage?—?(HP

Pre-Money Valuation 471

Pre-Money Valuation Valuation Venture Capital Early Stage 471

ReadWriteStart

JANUARY 27, 2011

For a more elaborate explanation of the deal, please read my blog post 1M/1M: Alternative Financing For Startups Using A Sales Channel Partner. I have discussed at length why revenue sharing channel deals may serve as perfectly fine alternatives to raising equity (or even complements) because of their non-dilutive nature.

Dilution 114

Dilution Revenue Finance Entrepreneur 114

Both Sides of the Table

APRIL 25, 2011

There’s a line of thinking in Silicon Valley that you should build product businesses rather than services businesses. It’s how things are done across the country outside of Silicon Valley. This post originally appeared on TechCrunch. It’s nearly impossible to get a services company financed by VCs.

Silicon Valley 332

Silicon Valley IP Dividend Finance 332

ReadWriteStart

SEPTEMBER 10, 2010

You can get cash without diluting your ownership in the company. Kristen is doing about $70,000 year-to-date, and expects to hit $200,000 for the 2010 fiscal year based on her holiday sales projections. Shirish had a pricing model question, as well as a set of go-to-market and sales strategy questions.

Cloud 115

Cloud Silicon Valley Incubator Finance 115

Reid Hoffman

JUNE 8, 2021

I came to Silicon Valley when I was 25, turning 26. And I think one of the things that we’ve learned is, when I came to Silicon Valley in 2007, we were starting Airbnb in 2008, it was a marketplace. But there’s something else that I think I learned, and that was that a lot of focus on Silicon Valley is about growth.

Silicon Valley 69

Silicon Valley Hosting Rhode Island Design 69

Lightspeed Venture Partners

NOVEMBER 19, 2012

Season 4 of week 10 of Shark Tank was interesting because two of the pitches were for internet businesses that I could imagine seeing in my day job as a Silicon Valley Venture Capitalis t. They talked about a referral program, as well as direct sales. The company did $250,000 in sales last year and is profitable.

Pre-Money Valuation 166

Pre-Money Valuation Alabama Valuation Churn Rate 166

Scott Edward Walker

AUGUST 31, 2011

Answer Welcome to the world of the Silicon Valley! As the late, great attorney Craig Johnson wrote in the book The Silicon Valley Edge: A Habitat for Innovation and Entrepreneurship : Although start-up lawyers in Silicon Valley draft documents and follow form books. Any advice would be appreciated.

Silicon Valley 45

Silicon Valley Term Sheet Liquidation Preference Redemption 45

Lightspeed Venture Partners

SEPTEMBER 23, 2012

Last week I gave a Silicon Valley VC’s take on the company pitches on Shark Tank as the new season four started, and it was well received. it also means less dilution, something that entrepreneurs should be very mindful of. His dismal sales (75 units last month) is a reflection of how hard it is to sell content.

Pre-Money Valuation 163

Pre-Money Valuation Post-Money Valuation Valuation Dilution 163

Reid Hoffman

JUNE 8, 2021

I came to Silicon Valley when I was 25, turning 26. And I think one of the things that we’ve learned is, when I came to Silicon Valley in 2007, we were starting Airbnb in 2008, it was a marketplace. But there’s something else that I think I learned, and that was that a lot of focus on Silicon Valley is about growth.

Silicon Valley 36

Silicon Valley Hosting Rhode Island Design 36

Startup Lessons Learned

AUGUST 24, 2009

When I reviewed a recent product development book, it immediately shot up to Amazon sales rank 300. And as everyone’s attention starts to focus on those same indicators, their value is being diluted. Is that a lot? I have given more than two-dozen paid speeches this year – is that a lot? Is that good?

San Francisco 113

San Francisco Lean Technical Review Distribution 113

Hippoland

APRIL 10, 2016

Standard vesting practices in the Silicon Valley at this time of writing are 4 year vesting with a 1 year cliff. You will all be diluted down considerably, so even if you are ok with 20-33% stake now, that is not what you will actually end up with if you raise a few rounds of funding.

Cofounder 48

Cofounder Cap Table Equity Vesting 48

maplebutter.com

JANUARY 8, 2013

Do that – nothing else but one product / company / focus and get to $1M in sales with atleast $15% net profit. I also like to get a sale $$$ ASAP. We’re a mobile development firm looking to increase new client sales. We have two full time sales people and we use Salesforce. Once you’ve done that – then. 1) Hire A’s.

Technical Review 44

Technical Review Startup Cofounder Software Review 44

Reid Hoffman

AUGUST 17, 2021

Therefore, the relationships around it and the natural products that come out of these things are essentially like sales products or other kinds of things. But not to try to dilute your own thesis, your own theory of the game, your own way of saying, “This is the magic that we’re providing to our customers, to our ecosystem.”

Cofounder 69

Cofounder Differentiation Search Advertising 69

Reid Hoffman

AUGUST 17, 2021

Therefore, the relationships around it and the natural products that come out of these things are essentially like sales products or other kinds of things. But not to try to dilute your own thesis, your own theory of the game, your own way of saying, “This is the magic that we’re providing to our customers, to our ecosystem.”

Cofounder 69

Cofounder Differentiation Search Advertising 69

www.paulgraham.com

APRIL 28, 2010

Youllprobably get either preferred stock, which means stock with extrarights like getting your money back first in a sale, or convertibledebt, which means (on paper) youre lending the company money, andthe debt converts to stock at the next sufficiently big fundinground. [ Dilution is normal. How much does an angel invest?

Angel Investor 63

Angel Investor Syndicate Syndication Dilution 63

www.startupnorth.ca

OCTOBER 23, 2010

Table 1: Options Grants in Silicon Valley for Series A from VentureHacks The numbers from VentureHacks are guidelines. and then further dilute for advisors (0.5% – 1% – 2%) and early employees (5 – 15% *if* they are foregoing major chunks of salary). Lead Engineer 0.5 – 1 5+ years experience Engineer 0.33 – 0.66

Employee 41

Employee Founder Salary Equity 41

Up and Running

DECEMBER 9, 2014

We’re building a True SaaS company in Boise, Idaho, not in Silicon Valley or not in New York. One of the things that we’ve done fundamentally I think it creates this difference is that we focus on sales. Crosstalk 00:51:17] put your efforts into actually making sales. I can hire a development team.

Small Business 95

Small Business Finance Forecast Metrics 95

abovethecrowd.com

APRIL 20, 2016

Ironically, Carreyou is not a Silicon Valley-focused reporter, and the success of the piece served as a wake-up call for other journalists who may have been struck by Unicorn fever. The typical Silicon Valley term sheet does not include such terms. It will also minimize future dilution. ” Go public.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Both Sides of the Table

MARCH 1, 2010

A few years ago I was having dinner with a friend of mine who works for one of the biggest known Silicon Valley firms. He was grateful since I stuck with my first company, BuildOnline, well beyond when others would have (since I had taken great dilution during the dot com burst.). He was telling me about a deal he had done.

Entrepreneur 321

Entrepreneur Warrant Silicon Valley Early Stage 321