Both Sides of the Table

SEPTEMBER 15, 2022

Median valuations for early-stage valuations tripled from around $20m pre-money valuations to $60m with plenty of deals being prices above $100m. IRRs work really well in a 12-year bull market but VCs have to make money in good markets and bad.

Technical Review 416

Technical Review Pre-Money Valuation San Francisco Valuation 416

David Teten

JANUARY 19, 2021

Seed-stage compatible: Like traditional equity VC investors, Flexible VCs accomodate early-stage investment risk within their portfolios better than a traditional RBI funder. Tim O’Reilly, CEO, O’Reilly Media, argues , “Blitzscaling isn’t really a recipe for success but rather survivorship bias masquerading as a strategy.”

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Both Sides of the Table

OCTOBER 17, 2019

An example was that while we were in the seed round at Ring and followed in the A, B, C and D … we were also able to lean into the E round when Jamie really wanted to scale up his funding and the final check was still > 420% IRR! Of course the media doesn’t do nuance well so this is an emotional topic.

IP 223

IP Intellectual Property IRR Cofounder 223

David Teten

MAY 8, 2012

As Steve Case has said, it’s ridiculous that anyone can gamble and be guaranteed to lose money, but there are strict regulations around who can invest in early-stage private companies and earn (in some cases) a 27% IRR on their capital. *. The Entrepreneurs Access to Capital Act helps to redress this. Start now! *

Securities and Exchange Commission 148

Securities and Exchange Commission IRR Entrepreneur Angel Investor 148

This is going to be BIG.

DECEMBER 28, 2013

I''ve closed on about 20 early stage investments and, by comparison, 5 of my investments are now worth $40 million or more either via financing or exit (with three more over $25 million). My total valuation multiple across that span is nearly 4x and the return rate is up over 110% IRR. The media needs to do it''s part, too.

Venture Capital 152

Venture Capital Cofounder IRR Dilution 152

K9 Ventures

MAY 14, 2011

In my view the terminology being used for early stage investors by the press and the media is not as clear as it should be. I’ve talked about this on several occasions when I’ve been at conference and on panels, but I figured it would make sense to do a post explaining my taxonomy of the early-stage investing world.

Preferred Stock 125

Preferred Stock Seed Stage Incubator Early Stage 125

Both Sides of the Table

MAY 25, 2013

But the larger funds usually have lower returns because they are often investing bigger dollars at later stages with less risk and therefore lower returns. As you can see in this Cambridge Associates data, early-stage investing beat later stage investing in returns in 70% of the past 30 years. I use social media.

LP 374

LP Later Stage IRR Term Sheet 374