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The Changing Structure of the VC Industry

Both Sides of the Table

pre-money valuation you certainly would want to exercise your right to continue investing if you had prorata rights. Just 3 years ago there was talk of institutional investors “not being able to write small enough checks.” ” Stated simply – if you seed funded Uber at $4.5m The iPhone was released.

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LinkedIn: The Series A Fundraising Story ? AGILEVC

Agile VC

Online social networking is a concept still being evangelized even in Silicon Valley… Friendster is in private beta (wasn’t until Oct 2003 they received Google acquisition offer which they turned down for Kleiner/Benchmark round). You can sometimes attract capital from farther away but typically harder to do at early stage.

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ProfessorVC: Touched by an Angel

Professor VC

Again, I see nothing wrong with this, although entrepreneurs often prefer convertible debt as it defers the valuation discussion and leaves the Series A price for the venture firm to set. He also said they typically only invest at a $1 million pre-money valuation or less. A Lot of Horn Tooting over a Kazoo sized deal.

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Finance Fridays: Getting Started – Allocating Equity and Founder’s Investment

Feld Thoughts

Through a series of conversations, Jane and Dick have come up with the idea to develop a social network tailored to the medical community. Jane felt comfortable with receiving 10% for $50k, but no less, so they agreed on a $450k pre money valuation of their startup. warrants or discounts).

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Channel your Inner VC to Understand Startup Valuations

www.currentlyobsessed.com

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. For some closing thoughts, I’ll just add that: Valuation tends to be too much of a focus for most early stage companies.