Both Sides of the Table

AUGUST 14, 2009

Make sure these people understand the nature of early-stage angel investing. Some angel groups have a reputation for slow decision making processes and not enough value add. I can say that you should do your homework to find out the reputation. The key to getting money is that the people writing the check trust you.

Silicon Valley 291

Silicon Valley Ireland Technical Review Valuation 291

The Next Web

SEPTEMBER 13, 2013

Many Asian entrepreneurs tell me that they want to raise funds from Silicon Valley firms because they perceive the valuations to be higher. But the problem with this is that most VCs in the Valley, especially early stage ones, only like to invest in companies that are within driving distance from their offices.

Asia 132

Asia Silicon Valley India Term Sheet 132

Steve Blank

JUNE 15, 2011

A tech bubble is the rapid inflation in the valuation of public and private technology companies that exceeds their fundamental value by a large margin. Today, the signs of the new bubble are the Linked-In initial public offering (IPO), Facebook’s stratospheric valuation and the rapid rise of early-stage startup valuation.

Silicon Valley 327

Silicon Valley Stealth Valuation Mississippi 327

Both Sides of the Table

APRIL 27, 2014

Seed investors are aplenty and of course they need downstream money to fuel their early-stage bets. You have to strike a balance between the commitment you have to each and every entrepreneur but also to your own reputation in the market not to be over-selling the performance of companies to downstream investors.

Cofounder 374

Cofounder Syndicate Syndication Early Stage 374

Both Sides of the Table

APRIL 8, 2010

My answer: “no.&# I believe that the team is high potential but the valuation seems stratospheric to me for the stage of the company. Quora ( funding led by Benchmark at a crazy valuation: $86 million ). Crazy valuation. I was asked if I would pay $80 million. We discussed some of the recent IPOs. and much more.

Venture Capital 232

Venture Capital IPO Valuation Deal Flow 232

Both Sides of the Table

MAY 30, 2015

You raise a series of notes over 18 months and eventually are fortunate enough to raise $5 million at a $25 million valuation (this investor owns 16.67% and will likely have a 1x liquidation preference). When that initial note converts in stead of $500,000 liquidation preference they would get $2.5 It’s the silent screwing that stings.

Liquidation Preference 150

Liquidation Preference Ratchet Angel Investor Entrepreneur 150

Feld Thoughts

FEBRUARY 25, 2016

Since the beginning of the year, I’ve experienced four retrades – two early stage, one growth, and one late stage – and I’ve heard of a number of others. I viewed it as a normal part of business, which impacted an investor or acquirer’s long term reputation, but was woven into the fabric of things.

Term Sheet 70

Term Sheet Reputation Valuation Acquisition 70

YoungUpstarts

SEPTEMBER 4, 2017

For startup founders and CEO’s it’s also just as common to see them place too much focus on the amount of money raised, and the pre-money valuation, rather than the value that each investor can bring to the table. Do you have relationships with other investors at the next stage of the investment lifecycle?

Pre-Money Valuation 187

Pre-Money Valuation Seed Stage IP Deal Flow 187

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. In this case, the VCs really consider this a true investment of both time and reputation. Lots of credibility, even at a very early stage. Pros: Lots of help from the VCs.

Startup 301

Startup Syndicate Syndication Boston 301

Hunter Walker

SEPTEMBER 22, 2014

Often these funds are attempting to build out a reputation or gain exposure to a new vertical. For entrepreneurs, you’re removing a degree of optionality very early in your existence since large funds have outcome goals that might be more restrictive than the full set open to a company backed by angel/seed investors.

Later Stage 95

Later Stage Valuation Semantic Institutional Investors 95

Both Sides of the Table

SEPTEMBER 5, 2012

What the entrepreneurs were really saying is, “I don’t want to take a lower valuation now, while I don’t have customers or a full team. You rarely find full ratchets in early-stage deals any more. Nobody I know accepts multiple liquidation preferences in early-stage deals.

Ratchet 354

Ratchet Liquidation Preference Equity Stock 354

Gust

JULY 23, 2012

To qualify for a deduction, the donation must be accompanied by an independent valuation appraisal. These challenges can include finding the right charity, time to facilitate the internal transfer process as well as retaining a valuation or tax expert to confirm tax savings and optimize the donation amount. in excess of $25,000).

Stock 114

Stock Capital Gains Warrant Stock Options 114

Hunter Walker

JANUARY 10, 2022

Next would be the fund itself: reputation, expertise (early stage vs. multi), and market experience (fintech/insurtech). This framework helped narrow the field for us a lot, and from there deal terms were probably the next most important thing.

Cofounder 89

Cofounder Founder Acquisition Startup 89

Both Sides of the Table

APRIL 3, 2010

I believe these VC funds have suffered some amount of reputation fall out. 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. A very well known early stage fund used to have a rule that they didn’t do follow ons.

Venture Capital 265

Venture Capital Term Sheet Early Stage Silicon Valley 265

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

FEBRUARY 19, 2015

It’s nice to get great valuations and hire A-players. I moved to Boston and knew no one and had no reputation, and so I had to constantly show product momentum, fundraising momentum, hiring momentum, revenue momentum — anything that was a signal that we were on a path to success. Keep at it. Be pragmatic. But sometimes you can’t.

Founder 120

Founder Startup Cofounder Business Model 120

Austin Startup

FEBRUARY 18, 2020

Your Sources Aren’t Credible If you’re making an argument about market size, you should be able to back it up with reputable data. So, it’s a good idea to have solid facts from reputable sources in the first place, and know what pops up with a simple Google search so you can defend your position if there’s a discrepancy.

Guinea 62

Guinea Founder Venture Capital Reputation 62

VC Cafe

JULY 4, 2012

Selection process with multiple stages and a board before business allowed on to platform. uses auction to decide on valuation. Entrepreneurs are unable to access debt financing (bank loans) in the early stages of the startup, due to the risky nature of their business and typically lack of revenue. 30 days as standard.

Equity 160

Equity Europe Due Diligence Startup 160

The Next Web

NOVEMBER 20, 2013

They have a notorious reputation for copying ideas of others and creating their own versions, and this even applies to companies they have invested in. Thus, there is going to be a bit of tightening within the early stage VC space in India over the next couple of years. As an example, just look at KakaoTalk relative to WeChat.

Asia 123

Asia Silicon Valley India China 123

Reid Hoffman

JANUARY 26, 2021

One common mistake is for entrepreneurs to simply select whichever venture capital firm is offering the highest valuation. Even relatively early stage boards should be thinking about diversity, because they face particular challenges on this issue. Thus board diversity helps startups capture more upside and avoid downside.

Startup 36

Startup Equity Early Stage Green 36

reidhoffman.org

NOVEMBER 12, 2013

Friendster’s valuation set the tone for the entire social networking space. Creating the right incentives and reputation system would lead to a directory people would be a part of. For early stage companies, it’s important to show that you’re on path, that you have prospects, and that you can get to your vision.

Entrepreneur 111

Entrepreneur Revenue Viral Networking 111

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. As a company gets more established,its valuation gets closer to an actual market value.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

Startup Professionals Musings

AUGUST 13, 2018

Your reputation is dependent on sincere communications, inclusion, and common goals. The ideal professional investor also changes as your startup matures.

Due Diligence 140

Due Diligence Equity Angel Investor Matching 140

abovethecrowd.com

APRIL 20, 2016

One key to this population growth has been the remarkable ease of the Unicorn fundraising process: Pick a new valuation well above your last one, put together a presentation deck, solicit offers, and watch the hundreds of million of dollars flow into your bank account. By January of 2016, that number had ballooned to 229.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

VC Cafe

OCTOBER 2, 2023

A bright spot is emerging in early-stage funding, signaling renewed investor risk appetite and startup momentum. Looking forward and conclusions To keep its reputation as ‘Startup Nation’ Israeli entrepreneur need to overcome global trends of rising inflation, but also self inflected wounds caused by its local government.

Generative AI 78

Generative AI Artificial Inteligence Stealth 78

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. Reputation Effect. Disappearing TVPI. “It

Vertical 48

Vertical LP Syndicate Syndication 48

Austin Startup

FEBRUARY 24, 2019

Opportunity cost is very real for any stage company, but it is critical for an early-stage one. not just the sale), and ultimately increase the valuation of your company and your ability to create jobs and realize your entrepreneurial dreams. So, as you think about winning your first clients, think about who first.

Software Review 48

Software Review Sales Cofounder Analytics 48

Feld Thoughts

JULY 14, 2015

Assuming equity is raised at or above that cap, the total dilution, before the new money, is 16.6% (equivalent to an equity financing of $1m at a $6m post money valuation. The term sheet converts all the convertible debt into a post-money valuation of $100, essentially making the convertible debt worthless. Sure – it happens.

Recapitalization 70

Recapitalization Pre-Money Valuation Post-Money Valuation Angel Investor 70

Both Sides of the Table

JUNE 23, 2015

This week Michael Dubin’s startup Dollar Shave Club announced a $75 million funding round at a rumored $650 million valuation. Having a slightly earlier-stage firm like Crosscut is a huge benefit to us and a huge asset for all of the LA technology ecosystem. LA has grown up a lot over the past 5 years.

Los Angeles 150

Los Angeles Silicon Valley Cofounder Early Stage 150

YoungUpstarts

SEPTEMBER 14, 2015

Values Are More Important Than Valuation. Sure, the pitch is all about track record and reputation and success, but everybody at the table knows that sooner or later the startup is going to hit a bump in the road. Billy Bosworth, CEO of DataStax, had a saying for this process of exclusion. Maybe a big bump.

Entrepreneur 100

Entrepreneur Dilution Chicago Partner 100

K9 Ventures

NOVEMBER 30, 2008

However, even though this is a young industry, I’m going to posit that “early-stage” venture capital as it exists today is broken and in need of reform. Now that’s nothing to snicker over, especially considering that well-reputed and established firms could often have multiple overlapping funds.

IRR 48

IRR Venture Capital LP Early Stage 48

www.businessinsider.com

SEPTEMBER 6, 2012

This Chart Shows Why VCs Are Willing To Give Hyped Startups Absurd Valuations. If the convertible debt has a " valuation cap " feature, the price at which the investors debt converts into shares has a maximum. The whole point is to provide a fast, easy form of financing that avoids wrestling over valuation.

Silicon Valley 54

Silicon Valley Startup Valuation Venture Capital 54

Haystack

SEPTEMBER 15, 2018

At Kleiner specifically, after slowly shedding the “green” energy practice (more on that below), the growth team (led by Mary Meeker, more on her below) worked with the early-stage team, which is in rebuild-mode as Doerr eventually stepped aside. There were serious interpersonal issues. Those two alone are huge.

Venture Capital 113

Venture Capital Early Stage Caching Green 113

Both Sides of the Table

MARCH 1, 2010

Let me outline the contra viewpoint, which is never expressed openly, but it what I believe gives our industry a bad reputation. Large early stage rounds. • Work with the best at early stages : I’d like to get involved with capital efficient companies early in their lifecycle. Closing text.

Entrepreneur 321

Entrepreneur Warrant Silicon Valley Early Stage 321

Both Sides of the Table

OCTOBER 18, 2015

Either we’ve discovered magical beans and elixir or perhaps we’ve gotten ahead of ourselves on valuation. Here is a chart to show you the median valuation of late stage private tech companies compared to traditional growth rounds of capital led by VCs and also vs. the public markets. 25% “down rounds?

IPO 150

IPO Venture Capital LP SEC 150

www.vccafe.com

MARCH 11, 2013

VC Cafe covers early stage Israeli and European tech & mobile startups. Seed Stage Valuation Guide. UCL has built a reputation as a pioneer of collaboration between industry and academia. valuations. It used to be hard to find information about early stage startups. VC & Startup Resources.

Software Review 53

Software Review Technical Review Startup 53