Both Sides of the Table

JUNE 30, 2016

It is a truism that with more capital you will hire people more quickly and spend more liberally whether it’s on external contractors, PR firms, attending events, doing legal work (trademarks, patents) or whatever. A $15–20 million valuation sounds better than an $8 million valuation, doesn’t it? million or $4 million.

Pre-Money Valuation 292

Pre-Money Valuation Valuation Early Stage Startup 292

Both Sides of the Table

FEBRUARY 17, 2011

million and you’re an early stage business this is probably a fair deal. You’re offered a $9 million pre-money to raise $3 million (e.g. 5 million raised at a $9 million pre-money valuation or 35.7% They get the PR bump. What might future markets hold in terms of valuations?

Pre-Money Valuation 303

Pre-Money Valuation Dilution Valuation PR 303

The Startup Lawyer

FEBRUARY 4, 2011

The following are some issues to consider and actions to take before accepting an incubator’s offer: (1) Calculate Valuation and Determine Value. Pre-money valuations startups receive from incubators are typically low…really low. 6) Search For the Incubator’s PR and Marketing Efforts.

Incubator 105

Incubator Pre-Money Valuation Option Pool Advisory Board 105

Both Sides of the Table

FEBRUARY 25, 2010

million at a $15 million pre-money valuation. We had people hearing through the grapevine that we were about to raise money and new investors started calling us to get in on the deal. Had I delayed my fund raising in 99/00 by even 3-4 weeks I’m convinced I would not have raised any money at all. We hit sub 2 weeks.

Technical Review 301

Technical Review Term Sheet Due Diligence Venture Capital 301

This is going to be BIG.

SEPTEMBER 7, 2012

So, the idea that it's a good or bad idea to follow on, or to play in certain stages versus others--honestly, it's a lot of marketing hype and anecdotal stories that really don't play out across the law of large numbers. Some of this thinking is also driven by folks who aren't well connected to the rest of the later stage venture community.

Later Stage 99

Later Stage Down Round Pre-Money Valuation Early Stage 99

www.paulgraham.com

OCTOBER 23, 2010

If you give an investor new shares equal to 5% ofthose already outstanding in return for $100,000, then youve donethe deal at a pre-money valuation of $2 million. At this stage the company is just a bet. Ididnt realize that when we were raising money. How do you decide what the value of the company should be?

Startup 105

Startup Cofounder Software Stock 105