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. I raised my A round at a $31.5 million post-money valuation with no revenue. Another firm we saw tried to raise $15 million at a $60 million pre-money with similar metrics.

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336

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. 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. If you're a multi-stage investor, I get this.

Later Stage 99

Later Stage Down Round Pre-Money Valuation Early Stage 99

abovethecrowd.com

APRIL 20, 2016

A high performing, high-growth SAAS company that may have been worth 10 or more times revenue was suddenly worth 4-7 times revenue. 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.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

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