Both Sides of the Table

JULY 22, 2010

How VC’s Calculate Valuation : We walked through a standard deal where you raise $1 million at a $3 million pre-money valuation leading to a $4 million post money valuation. You’ll need to hire and retain talen to grow your company. The VC assumes you’ll have an option pool.

Valuation 405

Valuation Liquidation Preference Pre-Money Valuation Term Sheet 405

Both Sides of the Table

JUNE 5, 2011

Early-stage investors in technology startups are only looking for growth-oriented companies that can achieve an “exit&# someday – either via selling your company to a larger company or via an IPO. I’ve been preaching the “don’t get ahead of your inherent valuation&# message for nearly 10 years.

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336

Both Sides of the Table

JUNE 5, 2015

If you add the pre-money valuation (let’s say $8 million) to the amount of money you’re raising (let’s say $2 million) you get the post-money valuation. Pre-money ($8m) + investment ($2m) = Post-money ($10m) and the investors now own 20% of your company $2m / $10m.

Pre-Money Valuation 150

Pre-Money Valuation Option Pool Post-Money Valuation Dilution 150

Both Sides of the Table

MAY 13, 2013

For the past 5 years or so Google, Facebook and a handful of tech industry giants have been quietly buying scores of early-stage startups for their talent. The Aqui-hire Business. Many buying companies price these deals on the basis of $1 million per engineer on the team for an early-stage deal. Go do a startup.

Liquidation Preference 357

Liquidation Preference Early Stage Retention Lock-up Period 357

This is going to be BIG.

MARCH 23, 2015

So whereas seed rounds five years ago may have been less than a million dollars on a pre-money valuation of three or four million, today''s seed is up and over a million and usually closer to two million, with post money valuations nearing $10 million. I don''t think early stage investors are taking enough risk.

Post-Money Valuation 60

Post-Money Valuation Valuation Pre-Money Valuation Seed Money 60

Both Sides of the Table

AUGUST 1, 2010

Short summary of my posts: 1. There is a structural reason that VCs are investing at early stages, 2. If we can’t agree on price I tell entrepreneurs that they can raise money and say “GRP will speak for half of the round.&# Done – the only signal is positive. the $190 million).

Post-Money Valuation 298

Post-Money Valuation Term Sheet Warrant Partner 298

VC Cafe

JUNE 10, 2022

Until now, early stage startups were relatively unaffected. According to new research by Pitchbook , the trickle down effect has already started in seed and series A startups with round sizes and valuations shrinking in size compared to 2021. The market correction has come for series A and seed startups.

Valuation 151

Valuation Marketing Venture Capital 151