Both Sides of the Table

SEPTEMBER 18, 2014

Him: But when I raised my first round we didn’t know how to price the company. There were no metrics. How will you price the next round? Your A round? Him: On metrics. Revenue multiple? If we priced it based on any metrics your company would likely be worth less than 7 figures at your A round.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

VC Cafe

MAY 18, 2022

venture capital and private equity) the VC index (by Refinitiv) shows a nearly 40% decline. Down rounds are coming. David Sacks offers a few benchmarks on growth rates (revenue), gross margins, CAC payback and burn. If they’re down 60%, there’s a good chance you’re in a similar position. Multiples by vertical.

Term Sheet 190

Term Sheet Startup Valuation Ukraine 190

Gust

SEPTEMBER 17, 2014

Him: But when I raised my first round we didn’t know how to price the company. There were no metrics. How will you price the next round? Your A round? Him: On metrics. Revenue multiple? If we priced it based on any metrics your company would likely be worth less than 7 figures at your A round.

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

Reid Hoffman

JUNE 8, 2021

The burden [should] just be that we care; that if we learn something, we improve it, and that we don’t only use single output metrics and its growth at all costs. If I could add one more bonus idea, this is if you’re incorporating your company, I would think about taking 1% or 2% equity and setting it aside for other stakeholders.

Silicon Valley 69

Silicon Valley Hosting Rhode Island Design 69

Growthink Blog

MAY 23, 2011

An entrepreneur starts a company in classic " bootstrap " fashion - with a combination of sweat equity and their own financial resources. This venture capital financing - usually between $3 and $10 million - is the first of a number of rounds of outside investment over a period of three to five years.

Angel Investor 112

Angel Investor Venture Capital Sweat Equity Cram Down 112

Reid Hoffman

JUNE 8, 2021

The burden [should] just be that we care; that if we learn something, we improve it, and that we don’t only use single output metrics and its growth at all costs. If I could add one more bonus idea, this is if you’re incorporating your company, I would think about taking 1% or 2% equity and setting it aside for other stakeholders.

Silicon Valley 36

Silicon Valley Hosting Rhode Island Design 36

David Teten

AUGUST 7, 2019

Likely signs of a Value investment: the company has challenges in filling out the round; the investors have more negotiating leverage than the founders during the closing process; the company has significantly better metrics (e.g. LTV / CAC, revenue growth, etc.) were clearly Momentum, but [in hindsight] they were also Value.”

Venture Capital 60

Venture Capital Valuation Stock NDA 60