Startup Professionals Musings

MARCH 14, 2020

Non-credible funding request or unreasonable valuation. Future unproven projections don’t set today’s valuation. Marketing programs and distribution channels are required for even the best solutions, with an appropriate and viable rollout and growth strategy. Investors are looking to buy a chunk of the business, not the product.

Due Diligence 308

Due Diligence Intellectual Property Preferred Stock Seed Stage 308

Agile VC

APRIL 17, 2011

Distribution revenue is CPC and CPA. . Historically more revenue came from distribution/lead-gen (57% in 2007), but this tipped in 2008 though appears to be steady from 2009 to 2010 at about 58% advertising and 42% distribution. Kayak generates both distribution (i.e. Pre-money valuation was approx.

Pre-Money Valuation 113

Pre-Money Valuation Liquidation Preference Dividend Common Stock 113

Gust

OCTOBER 16, 2012

This summer I conducted our third annual survey of the pre-money valuation of pre-revenue companies recently funded by angel groups in North America. Access to our 2010 and 2011 surveys can be found at 2011 Valuation Survey of North American Angel Investor Groups. 2012 Valuation Survey. pre-money valuation in US$ millions).

Angel Groups 169

Angel Groups Valuation Pre-Money Valuation North Dakota 169

View from Seed

SEPTEMBER 14, 2021

That’s a bit of a cautionary tale to VC investors today who might think it’s inevitable that the private value they are enjoying in their portfolios will certainly translate to distributions in the near future. Or is there a major disconnect between a portfolio’s valuations and the actual dollars returned to LPs?

Valuation 156

Valuation Pre-Money Valuation Distribution Early Stage 156

VC Adventure

MAY 5, 2022

How many of those valuations will hold remains to be seen, but that kind of market clearly advantaged funds that deployed capital very quickly. But there’s a lot of work for these companies (and many, many like them across the venture landscape) to grow into their paper valuations. A lot changes in that period of time. Many will not.

IRR 116

IRR Metrics Valuation LP 116

Both Sides of the Table

FEBRUARY 6, 2017

And it’s not just that VCs cut their investment pace but they also indicated overwhelmingly that valuations of investments had dropped with 76% of all VCs surveyed suggesting 2016 had lower valuations than 2015. So if funding from VCs slowed, valuations dropped and burn rates were slashed, WTF happened to winter again?

Venture Capital 150

Venture Capital Saudi Arabia Kuwait Burn Rate 150

David Teten

JANUARY 19, 2021

Yes, via conversion rights at a valuation cap. Yes, via conversion rights at a valuation cap. Seed-stage compatible: Like traditional equity VC investors, Flexible VCs accomodate early-stage investment risk within their portfolios better than a traditional RBI funder. Flexible VC: Compensation-based.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Gust

OCTOBER 20, 2011

In 2011, the valuation of pre-revenue, start-up companies is typically in the range of $1.5–$2.5 Scorecard Valuation Methodology. This method compares the target company to typical angel-funded startup ventures and adjusts the average valuation of recently funded companies in the region to establish a pre-money valuation of the target.

Valuation 146

Valuation Pre-Money Valuation Intellectual Property Technical Review 146

Startup Professionals Musings

AUGUST 1, 2016

Non-credible funding request or unreasonable valuation. Future unproven projections don’t set today’s valuation. Marketing programs and distribution channels are required for even the best solutions, with an appropriate and viable rollout and growth strategy. Investors are looking to buy a chunk of the business, not the product.

Due Diligence 120

Due Diligence Intellectual Property Preferred Stock Seed Stage 120

Gust

OCTOBER 17, 2012

Angel investors often act differently than VCs, and the fact that VCs abandoned seed-stage investing doesn’t necessarily mean they did so because seed investments are inherently less compelling. (A The distribution of returns from the different U.S. Let’s take a look at the actual data. and the U.K.,

Angel Investor 152

Angel Investor Venture Capital Seed Stage Silicon Valley 152

K9 Ventures

APRIL 9, 2014

Instead, it was more of a result of over-funding at the seed stage. There was simply too much money coming in to the seed stage, which increased the supply of companies at the seed stage. The low supply and high demand is driving up the valuations and deal sizes. Series C/D is the new Mezzanine.

Mezzanine 134

Mezzanine Seed Stage Early Stage IPO 134

Startup Company Lawyer

MARCH 14, 2010

I was actually somewhat surprised that the following investors have agreed to use the Series Seed documents in certain of the their deals: Baseline, Charles River Ventures, SV Angel (Ron Conway), First Round Capital, Harrison Metal Capital, Mike Maples, Polaris Venture Partners, SoftTech VC and True Ventures. Series Seed.

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

ReadWriteStart

JANUARY 28, 2022

This article will assist you in gaining a fundamental understanding of equity valuation, kinds of equity, and other related topics. They need to ensure that the shares are distributed productively. Of course, the higher the company’s valuation, the lower the scale of equity and advisor should expect. Equity for Investors.

Valuation 108

Valuation Equity Warrant Common Stock 108

techcrunch.com

OCTOBER 13, 2012

Angel investors often act differently than VCs, and the fact that VCs abandoned seed-stage investing doesn’t necessarily mean they did so because seed investments are inherently less compelling. (A The distribution of returns from the different U.S. Let’s take a look at the actual data. and the U.K.,

Angel Investor 103

Angel Investor Venture Capital Seed Stage Silicon Valley 103

View from Seed

JUNE 30, 2015

Or maybe you are just a bit off on your product, or else you needed more experimentation to get to the right strategy for distribution. I’d encourage founders not to be too discouraged by this but also to be really smart about how they use their capital at this stage. We’re not at normal yet.

Seed Stage 120

Seed Stage Syndicate Syndication Dilution 120

Agile VC

SEPTEMBER 27, 2011

And distribution rights to that content are still paramount to building digital video businesses. Providence Equity invested $100M at a $1B valuation not because of their technology or product, but because the network owners contributed a lot of valuable content… or at least access to it for 2years. Filed under Uncategorized.

Silicon Valley 100

Silicon Valley Seed Stage Syndicate Syndication 100

The Next Web

NOVEMBER 20, 2013

which will help with recruiting employees, finding the best partners, fast-tracking distribution in key countries, and landing marquee customers. Unfortunately, there has already been a lot of hype in this space so the valuations have become overheated, but that’s more of a problem for venture capitalists than for entrepreneurs.

Asia 123

Asia Silicon Valley India China 123

This is going to be BIG.

JULY 30, 2015

so that's what I said my exits would be as a seed stage fund. Distributions can actually be drawn out over an extended period of time, but for the purposes of this exercise, I just kept the fund to 11 years. I assumed the following: Seeds are done as a $1mm round on a pre-money valuation of $5mm. Exits are $250mm.

Venture Capital 60

Venture Capital Pre-Money Valuation IRR Valuation 60

Steve Blank

FEBRUARY 26, 2020

At the end of this post, we’ll discuss the valuation at each step (how much the investors value your company and therefore how much of it you need to give up to get this money) and how much revenue you should generate at each step.). Pre-seed Round of Funding. In the pre-seed stage, a startup is searching for product/market fit.

Cofounder 429

Cofounder Seed Stage Valuation Metrics 429

crowdSPRING Blog

FEBRUARY 16, 2011

Seed Stage Valuation Guide – [link]. Remarkable valuation for Zynga – but their profits might actually justify it – [link]. Interesting to watch Google’s approach to its digital distribution model – compared to Apple’s – [link]. – [link]. Is Apple a bit too greedy?

Social Media 95

Social Media Small Business Design Media 95

David Teten

DECEMBER 12, 2017

645 Ventures , a New York City based VC firm, is one of the pioneers of a data-driven investment model to the seed stage. We are taking a mathematical (weighted coefficients estimation, probabilistic modelling, etc), human-system hybrid approach to early stage investing through this tool.

Early Stage 60

Early Stage Technical Review Software Review Venture Capital 60

Both Sides of the Table

MARCH 6, 2011

I still think it’s best to take money from Dave when you’re also partnered with a more focused, hands-on seed-stage VC who brings different things to the table – like more ability to write larger checks in a downturn (for one) or solving a deep crisis that involves super hands-on involvement. I argue the opposite.

Valuation 292

Valuation Deal Flow Lead Investor Cofounder 292

Seeing Both Sides

SEPTEMBER 15, 2015

Only a handful of so-called unicorns — companies that have achieved a valuation of over $1 billion in the last 10 years — come from Israel, and only one Israeli firm, Teva, ranks in the world’s 500 largest companies by market capitalization. Understanding the market and establishing product/market fit is a critical seed-stage milestone.

Cofounder 20

Cofounder Technical Review United States 20

David Teten

MARCH 18, 2021

Valuation: $1M – $3M. Foundry Group, investing primarily in “ Software and Internet ”, follows six major themes, e.g., Human Computer Interaction (HCI) or Distribution. For example, Point Nine Capital focuses on B2B SaaS and marketplaces at the seed stage, across many industries. Check Size: $50K to $200K.

Technical Review 78

Technical Review Cofounder Venture Capital Deal Flow 78

steveblank.com

JULY 8, 2011

Github - Free public repositories, collaborator management, issue tracking, wikis, downloads, code review, graphs Pivotal Tracker – Agile project management tool that enables real time collaboration.

Software Review 110

Software Review Startup Silicon Valley Analytics 110

www.vccafe.com

MARCH 11, 2013

free, distributed source code control management system. Seed Stage Valuation Guide. valuations. Github -Â Free public repositories, collaborator management, issue tracking, wikis, downloads, code review, graphs. Pivotal Tracker â?? Agile project management tool that enables real time collaboration. Mercurial â??

Software Review 53

Software Review Technical Review Startup 53

pandodaily.com

NOVEMBER 29, 2012

Lastly, seed-stage entrepreneurs who have pushed for the maximum valuation possible haven’t done themselves any favors. Meanwhile, their seed investors aren’t particularly incentivized to get them a Series A that crams the previous valuation down. Chill Direct: Direct to fan content distribution.

Technical Review 93

Technical Review Silicon Valley Incubator Syria 93