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. You’re unlikely to want to make this sort of investment with the product or the market not yet validated. So how exactly are prices determined? There is no great science to it.

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336

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

This is going to be BIG.

SEPTEMBER 7, 2012

There are a lot of people that artificially group together performance metrics for venture, and try to extrapolate successful stratagies from it. Reality is that venture is a bunch of individual stories, individual assessments of teams, unique products, and a whole lot of stars lining up for particular companies for success to happen.

Later Stage 99

Later Stage Down Round Pre-Money Valuation Early Stage 99

abovethecrowd.com

APRIL 20, 2016

Also, they have a strong belief that any sign of weakness (such as a down round) will have a catastrophic impact on their culture, hiring process, and ability to retain employees. Their own ego is also a factor – will a down round signal weakness? A down round is nothing. Get over it and move on.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40