Both Sides of the Table

JUNE 5, 2011

The earlier you invest the higher the chances the company won’t work out and thus you pay a lower price than later-stage investors. That’s the deal you get when you’re raising in a good market for startup financing. So how exactly are prices determined? There is no great science to it. That’s fine.

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336

Berkonomics

AUGUST 3, 2023

Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). And even with the significant cost of credit card debt, many entrepreneurs aggressively use existing cards to finance a startup.

Private Equity 118

Private Equity Valuation Cap Table Accredited Investor 118

Both Sides of the Table

FEBRUARY 4, 2016

.” There are a lot of data points that one can observer to get a sense of the venture capital markets – both LP fundings into venture and VC financings of startups. They point to some widely known facts: financings & valuations are up massively over the past 7 years and non-VC money has entered the system.

LP 150

LP Valuation Burn Rate Pre-Money Valuation 150

Berkonomics

JUNE 8, 2017

Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). And even with the significant cost of credit card debt, many entrepreneurs aggressively use existing cards to finance a startup.

Private Equity 106

Private Equity Valuation Cap Table Accredited Investor 106

Berkonomics

JANUARY 20, 2010

This post will be perhaps a bit longer than usual, but certainly of great interest for those with interest in or have need for more capital… This stage is critical to many businesses and a passing option to others, depending upon the capital efficiency of the enterprise. For you who fit that description, nice work.

Private Equity 69

Private Equity Valuation Cap Table Accredited Investor 69

VC Cafe

JANUARY 2, 2023

On a global level, venture financing of private companies dropped 33% year over year, from a record $733B in 2021 to $490B in 2022. 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. ” Fred Wilson.

Valuation 159

Valuation Down Round Venture Capital 159

Both Sides of the Table

FEBRUARY 14, 2016

So the multiples paid by publics matter and when they drop, the late-stage markets drop, too. If you’re a B-round investor used to paying $50-100 million pre-money and you had a few years of later-stage investors paying $200 million+ 18 months after you invested you suddenly become less price sensitive.

Valuation 150

Valuation Down Round Startup Later Stage 150