David Teten

DECEMBER 3, 2019

In liquid markets, most of the calories expended on technology and analytics are focused on trade selection, or “ origination ”. I use another live Google doc to maintain my database of companies I’m marketing to other VCs. 2) Market . Many tools designed for B2B marketing in general are also relevant to investors.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

David Teten

JANUARY 19, 2021

The value ascribed by subsequent investors (in a secondary); buyers (acquisition); or the public markets (IPO). Yes, via conversion rights at a valuation cap. Yes, via conversion rights at a valuation cap. Coinvestors: Flexible VC terms have not been standardized, which may make the investment harder to syndicate.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Agile VC

MAY 26, 2011

The market size for online advertising, e-commerce, and web premium services are 1/10th to 1/3rd the size they are today. To give you a sense, for 2002 the entire US online ad market was $6B and had shrunk year over year (it was $25B+ for 2010). It was a pretty good valuation for the time. It was a $4.7M link] leehower.

Term Sheet 178

Term Sheet Silicon Valley Technical Review Social Network 178

David Teten

SEPTEMBER 23, 2017

The extreme example of this are algorithmic investors in the public markets, who design algorithms which trade on the designer’s behalf, as opposed to making trading decisions directly. High-frequency trading, algorithmic by its nature, is estimated to account for at least 50% of US equity markets trading volume. . 1) Market fund.

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

View from Seed

APRIL 30, 2015

In many instances, you raise an institutional round to either fulfill a product strategy or go-to-market strategy or you’re increasing sales and marketing hires, so you have better visibility into what needs to happen in the next six, 12, 18 months. NVV: Let’s talk about the seed stage specifically.

Term Sheet 120

Term Sheet Equity Startup Seed Stage 120

thebarefootvc

MAY 8, 2012

The best VCs are the ones that balance their optimism, vision and enthusiasm for startups with realism based on very real constraints (the primary one being his/her own time, but also includes market development and exit timing). Too many pivots, and you can lose the market opportunity, even with the greatest idea.

Venture Capital 78

Venture Capital Syndicate Syndication Bandwidth 78

View from Seed

JUNE 10, 2020

The partners at NextView hold sessions more than once per week to push the participants’ thinking and actions to strive towards making significant advances finding true-product market fit. We proactively look to build friendly syndicates for our Seed investments, and welcome collaborating to build together.

Cofounder 177

Cofounder Syndicate Syndication Alabama 177

Both Sides of the Table

APRIL 27, 2014

I started in 2007 with a thesis that my primary investment decision would be about the team (70%) and only afterward about the market opportunity (30%). Seed investors are aplenty and of course they need downstream money to fuel their early-stage bets. You have to decide how hard to help with downstream marketing for your deals.

Cofounder 374

Cofounder Syndicate Syndication Early Stage 374

Gust

OCTOBER 20, 2011

In 2011, the valuation of pre-revenue, start-up companies is typically in the range of $1.5–$2.5 Diversification across industry sectors is not as easily achieved for angels as could be accomplished in public markets, but can be achieved by co-investing with trusted angel colleagues in a broader set of businesses.

Valuation 146

Valuation Pre-Money Valuation Intellectual Property Technical Review 146

View from Seed

JANUARY 26, 2016

There are a number of factors that have contributed to the rise of pre-seed rounds, but the strongest have been the frothy late-stage financing market, coupled with both the scaling-up of some of the early winners in the institutional seed ecosystem and the scaling-down of some larger funds that retrenched after the financial crisis.

Seed Stage 120

Seed Stage Early Stage Cofounder Finance 120

View from Seed

AUGUST 20, 2014

If the company is doing really well, the VC will have an incentive to try to do more of the next round at perhaps not the highest possible valuation. Their aggressiveness sends a signal to the market. Lots of credibility, even at a very early stage. This is different than a round with multiple VCs that are not leading.).

Startup 301

Startup Syndicate Syndication Boston 301

Both Sides of the Table

MARCH 6, 2015

*. If you are a 20-something tech entrepreneur you could be forgiven for thinking that seed-stage investors, Angellist Syndicates and widely available angel money always existed. I began asking around who the likely investors were for such a market. It is, of course, a very recent phenomenon.

Seed Stage 150

Seed Stage Silicon Valley Syndicate Syndication 150

Agile VC

FEBRUARY 28, 2012

Startups in NextView’s portfolio frequently receive inbound interest from other VC investors who are intrigued about what they’re doing, and I often talk with other early-stage entrepreneurs how to approach similar situations. My perspective is basically to make an informed decision on a case-by-case basis.

Early Stage 100

Early Stage Syndicate Syndication Silicon Valley 100

View from Seed

JUNE 30, 2015

I think it’s much better to think of things in terms of company milestones , which are: Inception –> Early Product-Market Fit –> Strong PMF –> Scaling Growth. Or maybe your market hasn’t quite developed as quickly as you’d hoped. Almost all VCs actually invest across this spectrum.

Seed Stage 120

Seed Stage Syndicate Syndication Dilution 120

David Teten

NOVEMBER 15, 2013

Each new investor tends to raise valuations and lower returns for all the other competitive investors. The average equity fund investor earned a market return of only 4.25%. This may make sense from the individual perspective of a given VC, but collectively it ensures that early-stage companies are overvalued.

Management 114

Management Pre-Money Valuation Venture Capital New Hampshire 114

www.paulgraham.com

APRIL 28, 2010

Another concept we need to introduce now is valuation. I say "in theory" because in early stageinvesting, valuations are voodoo. As a company gets more established,its valuation gets closer to an actual market value. Startups valuations aresupposed to rise over time. Better how?

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

Austin Startup

AUGUST 1, 2017

TL;DR: In a market that has historically idolized huge, splashy financings and exits, an increasing number of entrepreneurs are realizing that everyone else’s definition of success — particularly among certain large VCs — isn’t necessarily aligned with their own. If you’re confident you’ll get a huge exit, maybe. Angels/Seed Funds v.

Liquidation Preference 48

Liquidation Preference Common Stock Valuation Silicon Valley 48

Both Sides of the Table

APRIL 3, 2010

Third, he notes that even if they do invest they’re likely to do so at a lower price because you can’t truly get an independent valuation. So if a VC wants to work with really talented early-stage entrepreneurs there are times where they have to be willing to seed fund them in order to be in the deal.

Venture Capital 265

Venture Capital Term Sheet Early Stage Silicon Valley 265

Berkonomics

DECEMBER 17, 2020

Let’s take a few minutes to examine the kind of equity financing available to small or early stage businesses. There are other classes of equity investors for small or early stage businesses that we have not yet considered. Some can supply more when syndicating with other such groups. Friends and family investors.

Equity 62

Equity Finance Liquidity Event Angel Groups 62

Both Sides of the Table

AUGUST 1, 2010

There is a structural reason that VCs are investing at early stages, 2. The fact that I invest less just means the company is earlier stage and needed/wanted less or without a product/market fit we weren’t yet prepared to invest more heavily. Tags: Startup Advice Tech Market Analysis VC Industry.

Post-Money Valuation 298

Post-Money Valuation Term Sheet Warrant Partner 298

Agile VC

FEBRUARY 9, 2012

In the modern age public market investors, whether they be focused on equities (stocks), fixed income (bonds), currencies, commodities, or derivatives of these, all have access to essentially the same investment choices and the same body of information. The VC industry is a competitive business. What’s Your Favorite Future?

Seed Stage 100

Seed Stage Framework Silicon Valley Early Stage 100

Hunter Walker

DECEMBER 21, 2014

17 core investments have been made, I’d say our investment model was, and continues to be, consistent with the type of firm we want to build but if you’re not constantly evaluating how to get better and serve entrepreneurs, you won’t last very long in the early stage venture business. No more, no less.

Cofounder 102

Cofounder Seed Stage Syndicate Syndication 102

www.paulgraham.com

APRIL 28, 2010

Mechanics Angel investors often syndicate deals, which means they join togetherto invest on the same terms. In a syndicate there is usually a"lead" investor who negotiates the terms with the startup. Dont feel like you have to join a syndicate, though. The valuation determines how much stock you get. million, and youget.05/1.05,

Angel Investor 63

Angel Investor Syndicate Syndication Dilution 63

Rob Go

JANUARY 7, 2013

Amidst the mass of new initiatives, new firms, new strategies, etc that constantly pop up in the early stage investing landscape, it’s helpful to have a clear articulation of what VC’s are focused on and how they see the world. Hybrid: 6 (includes payments companies, publisher tools, and marketing/commerce platforms).

Portfolio 49

Portfolio Seed Stage Cofounder B2B 49

Both Sides of the Table

FEBRUARY 25, 2010

We were trying to optimize around a few criteria: price, size of round, number of syndicate partners and, of course, terms. million at a $15 million pre-money valuation. Morgan Stanley had proposed a higher valuation to let them in. If you remember your history the market crashed the next week. Yes, this was stupid.

Technical Review 301

Technical Review Term Sheet Due Diligence Venture Capital 301

Tim Keane

APRIL 12, 2006

When they discuss market size, do they distinguish between current and addressable markets? This whole topic is of interest to investors for a number of reasons beyond the logic of market dynamics. this stage when the company can justify a higher. valuation than the previous round. How do you approach valuation?

Entrepreneur 60

Entrepreneur Valuation Sweat Equity Common Stock 60

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

Berkonomics

APRIL 3, 2014

There are three classes of equity investors for early stage businesses that we have not yet considered. And even though angel groups syndicate their best deals within their respective associated networks, it is always best to apply to the angel groups nearest your physical location.

Equity 92

Equity Finance Liquidity Event Angel Groups 92

Both Sides of the Table

OCTOBER 18, 2015

There is a lot of uncertainty about the state of the private, high-growth technology markets and the venture capital markets that underpin them. There is nobody to blame for this abandonment of common sense – it is simply the market being the market and we’re doomed to repeat history. It’s just a market.

IPO 150

IPO Venture Capital LP SEC 150