Gust
NOVEMBER 1, 2011
It is one of the useful methods for establishing the pre-money valuation of pre-revenue startup ventures. The concept is simply…since: Return on Investment (ROI) = Terminal (or Harvest) Value ÷ Post-money Valuation. (in Then: Post-money Valuation = Terminal Value ÷ Anticipated ROI. million.
Both Sides of the Table
OCTOBER 12, 2014
” If you invested at $8m pre-money and put $2m in (thus you own 20% of a company at a $10m post-money valuation) and if you put another $2m into a round at a $40m valuation raising $10m ($50m post) you end up with half your money at $8m pre and half at $40m pre thus your average price goes up dramatically.
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Both Sides of the Table
SEPTEMBER 25, 2010
On this assertion, for the reasons that Paul articulates in his post, I’m aligned. Not that they’re “such a bad idea&# but more that there are inherent problems for entrepreneurs in the process of raising angel money that need to be addressed. Here’s where I feel common ground : 1.
Startup Professionals Musings
JANUARY 27, 2012
Entrepreneurs sometimes assume an initial agreement with an Angel is a commitment, so they start spending before any money is received. But due diligence and paperwork take time, and can change everything. However, there is no set pattern of terms an entrepreneur might be able to anticipate from either.
Both Sides of the Table
FEBRUARY 15, 2016
As I have pointed out in previous posts , 91% of VCs surveyed believe prices are declining (30% believe substantially) and 77% believe that funding will take longer than it has in the past. I’m surprised how few entrepreneurs have this open conversation with their investors. Wouldn’t you rather know where you stand?
Startup Professionals Musings
SEPTEMBER 14, 2010
Entrepreneurs sometimes assume an initial agreement with an angel is a commitment, so they start spending before any money is received. But due diligence and paperwork take time, and can change everything. However, there is no set pattern of terms an entrepreneur might be able to anticipate from an angel, either.
Both Sides of the Table
JULY 25, 2010
Any SoCal entrepreneur raising early-stage money should put Rincon on their short list. He covers this is the first 15 minutes or so of the video and he’s awesome to listen to (more than 25,000 people have listend to this video so far – mostly entrepreneurs ;-)). It is how angel rounds come together.&#.
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