Gust

SEPTEMBER 17, 2014

How will you price the next round? Your A round? Revenue multiple? Me: There is no rational explanation for valuations of A round companies by ANY objective financial measure. Less than you’ll probably grant your most junior employees in stock options? A down round? Him: On metrics. What proof points?

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

Both Sides of the Table

FEBRUARY 8, 2016

If you raised money in the past 2 years and have grown it is possible that your next round valuation might be flat (or lower) even though you have a higher revenue because investors may value your multiple differently. Don’t assume that you can “just do a down round” if necessary.

Burn Rate 150

Burn Rate Cap Table Valuation Balance Sheet 150

VC Cafe

SEPTEMBER 26, 2022

A combination of competition for top talent and an effort to bring employees back to the office drove startups in Israel to throw extravagant parties and all-inclusive retreats abroad. The press took notice, especially since just a few months later startups were laying off employees en-masse to cut costs. Team, product, market.

Founder 187

Founder Startup Valuation Pre-Money Valuation 187

Feld Thoughts

SEPTEMBER 9, 2015

Some will demonstrate strategically justifiable metrics and have fantastic ‘up round’ exits; others may see liquidation preferences kick in which will negatively impact founders and employees; others may fulfill the adage “IPO is the new down round” , which has been the case for more than half of the public companies on our list.

Liquidation Preference 70

Liquidation Preference Burn Rate Balance Sheet .Net 70

Ben's Blog

JULY 16, 2013

Perhaps you are caught in the “Series A crunch” or perhaps you are a consumer company and expected that you would be valued on users rather than revenue like the last time. First, if you did not understand how radically the fundraising environment might change, then there is no chance that your employees would have understood it.

Marketing 36

Marketing Preferred Stock Post-Money Valuation Down Round 36

abovethecrowd.com

APRIL 20, 2016

All Unicorn participants — founders, company employees, venture investors and their limited partners (LPs) — are seeing their fortunes put at risk from the very nature of the Unicorn phenomenon itself. A high performing, high-growth SAAS company that may have been worth 10 or more times revenue was suddenly worth 4-7 times revenue.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Altgate

MARCH 8, 2009

Growth stage investors are usually the Series B or C investors who come in when the product is in the market but there is little or no revenue and the team is probably in the 20-something range with the goal to ramp it up to 40-50 employees with the new money, build out a sales team, etc. “Series B&# funds.

Later Stage 34

Later Stage Early Stage Venture Capital Portfolio 34

Both Sides of the Table

FEBRUARY 14, 2016

Social networking finally came of age connected the planet and leading to enormous wealth creation for Facebook employees and investors. Smart phones finally took off leading to enormous wealth creation for Apple employees and investors but also helped propel Google, Facebook, Twitter, Instagram, Snapchat, WhatsApp and others.

Valuation 150

Valuation Down Round Startup Later Stage 150

VC Cafe

NOVEMBER 30, 2022

On a high level, the report found that “ of the more than 300 VC-backed unicorns in the region, 203 have fuelled more than 1,000 (1,018) new tech-enabled startups, with former employees becoming founders “ In terms of hubs, UK and Israel have produced the highest numbers of unicorns outside of US and China.

Europe 97

Europe Balance Sheet Valuation 97

Reid Hoffman

JUNE 8, 2021

And then how would you prompt other entrepreneurial leaders to think more broadly about stakeholders than even just investors, employees, customers, which tends to be the typical trifecta? We identified five, and the trifecta of employees, shareholders and customers, everyone has those, we also added two more. BC: Exactly, Reid.

Silicon Valley 69

Silicon Valley Hosting Rhode Island Design 69

www.paulgraham.com

APRIL 28, 2010

There never has to be atime when you have no revenues. The reason is that employees are investors too—oftheir time—and they want just as much to be able to cash out. Most firmsalso have a handful of junior employees called something likeassociates or analysts. So after this the option pool is down to 13.7%). [

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

Reid Hoffman

JUNE 8, 2021

And then how would you prompt other entrepreneurial leaders to think more broadly about stakeholders than even just investors, employees, customers, which tends to be the typical trifecta? We identified five, and the trifecta of employees, shareholders and customers, everyone has those, we also added two more. BC: Exactly, Reid.

Silicon Valley 36

Silicon Valley Hosting Rhode Island Design 36