Tim Keane

JANUARY 12, 2010

Term-sheets and Valuations: Thinking about Negotiations.   I’ve sat down with entrepreneurs and a copy of a term sheet guide I like [ “Term Sheets & Valuations - A Line by Line Look at the Intricacies of Venture Capital Term Sheets & Valuations ” by Alex Wilmerding, Aspatore Press.] The Valuation Question.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

David Teten

SEPTEMBER 23, 2017

In venture capital in particular, early-stage companies are often operating in frontier industries, where the rules are unpredictable and conventional analytic frameworks may be misleading. The Pocket Negotiator is very early-stage attempt to aid in the negotiating process itself. . Accompany focuses on this use case.

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

Up and Running

JULY 14, 2015

An early stage startup will want to access funds to help further validate its business proposition. Any investor will put their valuation on your business based on a number of factors, including looking at important metrics for your business, patents, or assets. But raising too much money will cause the valuation to increase.

Technical Review 60

Technical Review Valuation Due Diligence Finder 60

Agile VC

MAY 26, 2011

In another we decended into a debate about our 5 year forecasts (I built the models so fielded most of these questions), and it became clear they probably weren’t the best fit for our Series A round (this group is no longer in the early-stage VC business). It was a pretty good valuation for the time. It was a $4.7M

Term Sheet 178

Term Sheet Silicon Valley Technical Review Social Network 178

www.entrepreneur.com

SEPTEMBER 22, 2011

Franchises Franchises Home Franchise 500 Home-Based Low Cost Top New Fast Growing Top Global Biz Opportunities Franchises for Sale Franchises A Bright Forecast for a Solar Panel Installation Franchise. Sweat equity is just one component of early-stage valuation. In fact, it could be worth much more.

Sweat Equity 55

Sweat Equity Equity Fractional CTO CTO 55

Startup Professionals Musings

SEPTEMBER 30, 2011

Once you have a potential investor excited about your team, your product, and your company, the investor will inevitably ask “What is your company’s valuation?” How much is NewCo worth to investors at this point (pre-money valuation)? This is the most concrete valuation element, usually called the asset approach.

Pre-Money Valuation 246

Pre-Money Valuation Valuation NPV Intellectual Property 246

SoCal CTO

MAY 19, 2010

By way of background for the question, there’s a great post by Bob Aholt, a Pasadena Angel: An Angel Investor’s Thoughts on Valuation. In his recent post, Top 10 Ways to Win a Business Plan Competition , he says: #4 I wanted to push this further down the list, but I just bristle at this: the revenue forecast. So get real.

Hockey Stick 205

Hockey Stick NPV IRR Valuation 205

Berkonomics

MARCH 21, 2019

Careful about “hockey stick” forecasts. Email readers, continue here…] Most VC’s look for a 10x opportunity – that is – a ten times increase in the valuation from investment to liquidity event. It is also a factor that early stage investors don’t want a controlling interest in your company.

Hockey Stick 63

Hockey Stick Liquidity Event Valuation Balance Sheet 63

ReadWriteStart

JANUARY 28, 2022

This article will assist you in gaining a fundamental understanding of equity valuation, kinds of equity, and other related topics. Of course, the higher the company’s valuation, the lower the scale of equity and advisor should expect. Importance of equity valuation. Make forecasts about the company’s performance.

Valuation 108

Valuation Equity Warrant Common Stock 108

Both Sides of the Table

OCTOBER 1, 2009

There’s no doubt (at least anecdotally) that the pace of VC investments in early-stage technology companies has picked up in the past few months. I hear from several sources that Sequoia is very active in the market aggressively chasing several deals and even driving up prices on some early-stage deals.

IPO 255

IPO Investment Bankers Venture Capital Marketing 255

genylabs.typepad.com

SEPTEMBER 24, 2011

Tracking and Forecasting the Trends Impacting the Future of Small Business. Before you agree to take equity in lieu of cash, you need to understand that any individual early stage start-up company equity is most likely going to be worthless. Lessons from a Failed Forecast. Small Business Labs. Follow us on Twitter.

Equity 40

Equity Technical Review San Jose Stock 40

VC Cafe

SEPTEMBER 26, 2022

For more about forecasting growth in these uncertain times, check out Sequoia’s “ Adapting to Endure ” presentations published in May 2022. ValuatIon should be a function of value, not ego. Kawasaki’s Law of Pre-Money Valuation: for every full-time engineer, add $500,000; for every full-time M.B.A.,

Founder 187

Founder Startup Valuation Pre-Money Valuation 187

ConversionXL

OCTOBER 2, 2018

Don’t expect a single paper to define, for all time and every business, the ideal pixel width for product images or sample size for accurate sales forecasts. Multiple ‘buy buttons’ in the brain: Forecasting chocolate sales at point-of-sale based on functional brain activation using fMRI”. Read the full study here (gated content).

Forecast 134

Forecast Guatemala Audio Green 134

www.currentlyobsessed.com

MAY 28, 2010

Valuation is an important aspect of VC deal terms, and a major determinant of your ultimate outcome. I unexpectedly found that it was more helpful to think about the company valuation as an output variable in the fund-raising equation. It hardly deserves any attention at all in the early stages. Or is it?

Valuation 42

Valuation Channel Pre-Money Valuation Term Sheet 42

Hunter Walker

NOVEMBER 30, 2022

As cofounder of an early stage venture fund myself, I’m here to tell you that while these statements are accurate, they’re also misleading when trying to understand the broad impact these implosions may have upon a firm. It was only 4% of the fund” could be true but you might have been carrying it at a current valuation of 100x that.

Vertical 48

Vertical LP Syndicate Syndication 48

Up and Running

SEPTEMBER 20, 2016

enabling you to expand on an already working business model), and if you’re in the extremely early stages of building your company, you still need to develop your product. When it comes to product development and marketing in the early stages of your tech startup, funding is optional. You’ll get a low valuation.

Early Stage 60

Early Stage Startup Forecast Channel 60

Berkonomics

DECEMBER 19, 2013

If you are an investor in an early stage venture, wouldn’t a dialog using these questions help greatly in defining and perhaps reducing your risk? Valuation and fund-raising : How did you arrive at your proposed pre-money valuation? And isn’t it worth the effort for your own good as you build for success?

Pre-Money Valuation 105

Pre-Money Valuation Liquidity Event Cofounder Valuation 105

David Teten

NOVEMBER 15, 2013

Each new investor tends to raise valuations and lower returns for all the other competitive investors. This is the psychology that drives VCs to load up a company with more capital, rationalizing that $5m at a $20m pre-money valuation is little different than $10m at a $40m pre-money valuation.

Management 114

Management Pre-Money Valuation Venture Capital New Hampshire 114

Ben's Blog

MAY 24, 2021

So, even assuming they wanted to raise the same amount of nominal dollars at the IPO as in the past, a higher valuation means they can do so by issuing many fewer shares. This makes little sense when you consider the differential risks of loss associated with those two very different stages of investments.

SEC 36

SEC Accredited Investor IPO Technical Review 36

Up and Running

DECEMBER 9, 2014

What I did is I learned the art of a pro forma and the value of a pro forma which basically is a forecast. If you don’t know what your cash flow forecast is, you don’t really understand your capital needs. My name is John Bates. I’m the CEO of Executive Speaking Success and I’m a long-time entrepreneur.

Small Business 95

Small Business Finance Forecast Metrics 95