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How to Talk About Valuation When a VC Asks

Both Sides of the Table

Many VCs will have a distribution curve where they’ll do a small number of early-stage deals (say $1.5–3 3 million invested at a $6–10m pre-money), a larger number of “down the fairway” deals ($4–5 million at a $15–25 million pre) and a few later-stage deals (say $8–10 million at a $30–40 million pre).Of

Valuation 324
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State of Israeli tech ecosystem 2022 and what to expect in 2023

VC Cafe

Sector funding distribution according to Greenfield Partners. Large LPs are signalling the need to slow down, and funds realise it may take longer to fundraise. As a result, I expect to see slower pace of investing across stages. Lower valuations , especially in later stage. ” Fred Wilson.

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Some Thoughts and Models Around Ownership Targets

This is going to be BIG.

We do the work of sorting through the pitch decks of everyone and their mother, finding the diamonds in the rough, helping them turn an idea into something that looks like a company—and we do it for a fraction of the management fees of our later stage counterparts. It doesn’t take into consideration options, down rounds, or recaps.

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On the Road to Recap:

abovethecrowd.com

Also, they have a strong belief that any sign of weakness (such as a down round) will have a catastrophic impact on their culture, hiring process, and ability to retain employees. Their own ego is also a factor – will a down round signal weakness? A down round is nothing. Get over it and move on.

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