Both Sides of the Table
MAY 30, 2018
I thought I’d write a post about how to talk about valuation at a startup and give you some sense of what might be on the mind of the person considering funding you. What was the post money on your last round (and how much capital have you raised)? VCs hate “down rounds” and many don’t even like “flat rounds.”
Both Sides of the Table
SEPTEMBER 28, 2014
The more you burn the higher your investor’s leverage relative to you is if you start to run out of money and don’t have options. Valuation. I wanted to call out special attention to valuation in this debate. If you’re raised at $250 million+ valuation even more cautious.
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Both Sides of the Table
JUNE 5, 2011
2: As expected at least one person accused me of writing this post because I want to see lower valuations. As the risks below get eliminated the higher the valuation investors are prepared to pay. So rounds tend to be “range bound&# where the top end of the valuation spectrum often being done in boom markets (i.e.
Feld Thoughts
FEBRUARY 9, 2016
There are three things that will mess you up in the long run: Too much liquidation preference : My simple rule of thumb is that if you’ve raised more than $25m and your liquidation preference is greater than 50% of your post money valuation, you have too much liquidation preference.
Lightspeed Venture Partners
OCTOBER 7, 2012
That’s why most entrepreneurs do not make a specific ask on valuation, but wait to hear offers from investors. As Cuban pointed out, this is a “down round” Zomm is seeking $2M for 10% of the company, implying an $18M pre money valuation today. The last company was a bit of a puzzler.
Startup Professionals Musings
JANUARY 27, 2012
The price is the percent of ownership given to the investor, calculated as “investment/post-money valuation.” The pre-money valuation is company value today, while the post-money valuation is the pre-money valuation plus the investment amount. Seat on the board.
Both Sides of the Table
SEPTEMBER 18, 2014
Me: There is no rational explanation for valuations of A round companies by ANY objective financial measure. How do you think they’ll feel if your next round is at a $50 million post money valuation and their hard-earned $25,000 is worth 0.05% of your company? People seem concerned about valuation.
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