Berkonomics

AUGUST 3, 2023

The subject of raising money is critical to many businesses and a passing option to others, depending upon the capital efficiency of the enterprise. And even with the significant cost of credit card debt, many entrepreneurs aggressively use existing cards to finance a startup. For those of you who fit that description, nice work.

Private Equity 118

Private Equity Valuation Cap Table Accredited Investor 118

Both Sides of the Table

JUNE 5, 2011

So in 2011 as a startup company if you can generate lots of demand you can definitely raise an A round of capital (say $3 million) at a $7 or 8 million pre-money valuation or slightly higher whereas just two years ago you would have struggled. I raised my A round at a $31.5 million post-money valuation with no revenue.

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336

VC Cafe

FEBRUARY 27, 2024

A founder asked me what makes a $2M round “pre-seed”? especially if the startup already has a product and revenue? And why do we still sometimes hear about pre-seed rounds that look more like a series A in pricing and size? Pre-seed tends to be about developing an MVP and generating early traction.

Valuation 186

Valuation Software Review Generative AI Technical Review 186

The Equity Kicker

JANUARY 22, 2014

You decide you’re ready to scale and raise millions, so you pitch big venture funds on a big growth story. To meet growth and revenue targets, you hire and spend like never before. Investors who paid up for your financing are not happy. Startup general interest Venture Capital'

Venture Capital 102

Venture Capital Down Round Valuation Lean 102

Berkonomics

JUNE 8, 2017

The subject of raising money is critical to many businesses and a passing option to others, depending upon the capital efficiency of the enterprise. And even with the significant cost of credit card debt, many entrepreneurs aggressively use existing cards to finance a startup. For you who fit that description, nice work.

Private Equity 106

Private Equity Valuation Cap Table Accredited Investor 106

Growthink Blog

MAY 23, 2011

The typical wisdom regarding the appropriate financing course for a new company goes as follows: 1. 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. There are a lot of dark, hard days.

Angel Investor 112

Angel Investor Venture Capital Sweat Equity Cram Down 112

Gust

SEPTEMBER 17, 2014

Me: So, you raised venture capital? We raised a seed round. You’ll find out the minimum when the next round is raised. It’s like we need a finance 101 course for entrepreneurs. Him: But when I raised my first round we didn’t know how to price the company. How will you price the next round?

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

Both Sides of the Table

SEPTEMBER 27, 2010

There are real changes in the venture capital industry and it would have been fun to talk about them. What micro VCs need to consider is what happens when several of your companies want to grow and require VC financing? Or when the economy turns downward and they all need financing extensions? Answer: Not much.

Liquidity Event 308

Liquidity Event Silicon Valley Seed Stage Finance 308

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

abovethecrowd.com

APRIL 20, 2016

Why the Unicorn Financing Market Just Became Dangerous…For All Involved. In February of last year, Fortune magazine writers Erin Griffith and Dan Primack declared 2015 “ The Age of the Unicorns ” noting — “Fortune counts more than 80 startups that have been valued at $1 billion or more by venture capitalists.”

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

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. 2022 in Israeli tech and venture. Down rounds, especially for growth stage companies, and bridge rounds galore. The case for US venture capital outperformance ( source ).

Valuation 158

Valuation Down Round Venture Capital 158

Both Sides of the Table

FEBRUARY 14, 2016

Put simply, it’s really hard to build a strong company when all of your competitors are giving away free s**t fueled by venture capital chasing winner-take-all returns. forward revenue for SaaS businesses when in the years before it had been less than 5x. Why Financing in Falling Markets is So Damn Difficult.

Valuation 150

Valuation Down Round Startup Later Stage 150

This is going to be BIG.

SEPTEMBER 7, 2012

In the late 90's, it wasn't surprising that companies with no revenue that were funded at 100 million dollar valuations didn't survive. That wasn't a bubble bursting issue--that was a poor financing strategy issue of people getting caught with their pants down, hands in the cookie jar, and all the metaphors you can think of at once.

Later Stage 99

Later Stage Down Round Pre-Money Valuation Early Stage 99

Both Sides of the Table

OCTOBER 18, 2015

There is a lot of uncertainty about the state of the private, high-growth technology markets and the venture capital markets that underpin them. Technology riches yield bumper crops in venture capital with new firms and new largesses – the rewards of LPs rediscovering our asset class. Are LPs to blame?

IPO 150

IPO Venture Capital LP SEC 150