Both Sides of the Table

JULY 23, 2014

There has been much discussion in the past few years of the changing structure of the venture capital industry. The rise of “micro VCs” or seed-stage funds. The rise of alternative sources of capital (crowd funding and the like). On the surface the narratives have been. The iPhone was released.

Technical Review 398

Technical Review Venture Capital Valuation Pre-Money Valuation 398

View from Seed

JANUARY 27, 2021

. $100M is a meaningful increase from our $50M third fund, though it’s still quite small in the grand scheme of venture, especially amid the recent wave of late stage financings and SPACs. We believe that this fund is the perfect size for us to be the best possible partners to early-stage entrepreneurs today.

LP 411

LP Early Stage Seed Stage Venture Capital 411

Startup Professionals Musings

JULY 22, 2020

For example, if you have a proven product, real revenue, a big potential market, and are ready to scale up the business, every investor will be interested. On the other hand, if you are a new entrepreneur, still in the idea stage, professional investors will only tell you to come back later when you have traction (customers and revenue).

Angel Investor 370

Angel Investor Intellectual Property Investment Bankers Private Equity 370

Both Sides of the Table

JULY 16, 2010

One is the “denominator problem&# which says that if an LP invests X% (the denominator) into “alternative investments&# such as venture capital and if their total amount available to invest (the numerator) goes down by 30% then the amount they allocate to VC will by definition need to go down by 30% to stay the same percentage.

LP 311

LP Technical Review Early Stage Silicon Valley 311

K9 Ventures

JUNE 5, 2015

Almost two years ago, in a private/closed meeting with K9 Ventures’ LPs only, I claimed that: What was being referred to in the press as the “Series A Crunch” was not because fewer Series A deals were being done, but because there were too many Seed deals being done. The risk here is what I refer to as the curse of over-capitalization.

Seed Stage 48

Seed Stage Venture Capital Early Stage Valuation 48

Rob Go

SEPTEMBER 4, 2018

It occurred to me that although we mentioned our new thematic approach when we raised our last fund in 2017, we haven’t really shared a broader manifesto about how we are approaching the early stage market. It’s been an interesting several years in the early stage venture eco-system, and the sands have shifted considerably.

North America 36

North America Seed Stage Early Stage Lead Investor 36

Feld Thoughts

NOVEMBER 2, 2016

This quarter they interviewed me as part of it on Quarterly VC Update: Brad Feld on the State of Venture Capital Investing. It continues to be highly dependent on company, stage, and location. At the early stages, raising the first $2m tends to be straightforward in most geographies that have meaningful startup communities.

Venture Capital 70

Venture Capital Private Equity Early Stage Valuation 70

Startup Professionals Musings

AUGUST 19, 2018

For example, if you have a proven product, real revenue, a big potential market, and are ready to scale up the business, every investor will be interested. On the other hand, if you are a new entrepreneur, still in the idea stage, professional investors will only tell you to come back later when you have traction (customers and revenue).

Angel Investor 184

Angel Investor Intellectual Property Investment Bankers Private Equity 184

VC Cafe

FEBRUARY 27, 2024

A founder asked me what makes a $2M round “pre-seed”? especially if the startup already has a product and revenue? And why do we still sometimes hear about pre-seed rounds that look more like a series A in pricing and size? So far there’s not much that has changed, so why should pre-seed look any different in 2024?

Valuation 186

Valuation Software Review Generative AI Technical Review 186

K9 Ventures

JUNE 12, 2012

While it it may not feel that way, the data suggest that there is indeed too much capital in the system — especially so at the seed stage, with more and more individuals and larger funds trying to invest in companies at this stage.). For most venture capital funds money is a commodity. It is a tool.

Venture Capital 117

Venture Capital Silicon Valley Founder Seed Stage 117

Startup Professionals Musings

JULY 4, 2014

For example, if you have a proven product, real revenue, a big potential market, and are ready to scale up the business, every investor will be interested. On the other hand, if you are a new entrepreneur, still in the idea stage, professional investors will only tell you to come back later when you have traction (customers and revenue).

Angel Investor 232

Angel Investor Intellectual Property Investment Bankers Private Equity 232

K9 Ventures

JUNE 12, 2012

While it it may not feel that way, the data suggest that there is indeed too much capital in the system — especially so at the seed stage, with more and more individuals and larger funds trying to invest in companies at this stage.). For most venture capital funds money is a commodity. It is a tool.

Venture Capital 105

Venture Capital Silicon Valley Founder Seed Stage 105

Startup Professionals Musings

AUGUST 13, 2016

For example, if you have a proven product, real revenue, a big potential market, and are ready to scale up the business, every investor will be interested. On the other hand, if you are a new entrepreneur, still in the idea stage, professional investors will only tell you to come back later when you have traction (customers and revenue).

Matching 120

Matching Angel Investor Intellectual Property Investment Bankers 120

BeyondVC

JANUARY 3, 2019

The 10 year bull market where every company’s revenue chart is up and to the right is over. Seed funds back to basics in 2019: We highlighted the barbelling of VC in the year-end 2017 update and see this continuing in 2019. Either you’re a mega fund or an early stage fund, being caught in the middle is a place you don’t want to be.

Stealth 79

Stealth Advisory Board Cloud Virginia 79

K9 Ventures

APRIL 9, 2014

Instead, it was more of a result of over-funding at the seed stage. There was simply too much money coming in to the seed stage, which increased the supply of companies at the seed stage. Threshold for an IPO is higher Ten years ago, if you had $20M in revenue you were ready to go public.

Mezzanine 134

Mezzanine Seed Stage Early Stage IPO 134

Steve Blank

JUNE 15, 2011

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. Long before others, they saw that these applications could have hundreds of millions of users with “off the chart&# revenue and profits.

Silicon Valley 327

Silicon Valley Stealth Valuation Mississippi 327

techcrunch.com

OCTOBER 13, 2012

He is on the board of the Angel Resource Institute, and is a partner with Montlake Capital (a late stage growth capital fund) and with Revenue Capital Management (a royalty based lender). Conventional wisdom dictated that they made reckless investments in very early-stage ventures mostly doomed to fail.

Angel Investor 103

Angel Investor Venture Capital Seed Stage Silicon Valley 103

SoCal CTO

NOVEMBER 5, 2009

I recently got together with Aaron Shechet and an early stage startup to discuss the direction the company might want to take. You and I were talking about a startup recently and where they might go for seed stage funding, what is your impression on that aspect here in Los Angeles? Tell me a bit about your background.

Los Angeles 150

Los Angeles Southern California Startup SEO 150

Both Sides of the Table

JUNE 29, 2011

Yesterday I wrote Part 1 of the series on the changes to the software industry over the past decade that has led to changes in the venture capital industry itself. With new micro VC entrants into to early-stage investing plus increased competition from angels, incubators and the like – traditional VCs have taken notice.

Venture Capital 296

Venture Capital Software LP Early Stage 296

Both Sides of the Table

OCTOBER 6, 2010

But in my experience as an entrepreneur and now spending my time amongst investors I can generalize that almost all VC investments in early stage technology & Internet investments come down to just four key factors. Everyone has their own definition of momentum (user numbers, revenue, channel partners, biz dev deals, whatever).

Early Stage 360

Early Stage Startup Venture Capital Seed Stage 360

Both Sides of the Table

SEPTEMBER 27, 2010

What do you get when you combine 7 panelist plus one moderator on to a stage for 30 minutes to talk about a serious topic? There are real changes in the venture capital industry and it would have been fun to talk about them. Now we can call you a seed-stage VC or a micro VC. Answer: Not much. It’s a shame.

Liquidity Event 308

Liquidity Event Silicon Valley Seed Stage Finance 308

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. Here’s a good example from Volition Capital. Stage: Pre Product: 12.

Portfolio 49

Portfolio Seed Stage Cofounder B2B 49

Steve Blank

AUGUST 27, 2009

Yet we used the product development model not only to manage product development, but as a road map for finding customers and to time our marketing launch and sales revenue plan. We’ll look at the model stage-by-stage. Product Development In stage two, product development, everyone stops talking and starts working.

Silicon Valley 260

Silicon Valley Product Startup Product Development 260

Gust

OCTOBER 20, 2011

Individual accredited investors in typical angel deals put personal capital at risk for an equity share of growth-oriented, start-up companies. In 2011, the valuation of pre-revenue, start-up companies is typically in the range of $1.5–$2.5 As can be seen the average (mean) pre-money valuation for recent pre-revenue deals is $2.1

Valuation 146

Valuation Pre-Money Valuation Intellectual Property Technical Review 146

Steve Blank

FEBRUARY 26, 2020

There are two reasons to raise money: You have a killer idea that is only partially validated, that you think can get to $50M+ of revenue in 5 years with 80%+ gross margins (if margins are lower, you need a lot more revenue)and you need money to get to product-market fit, or. Not all startups need outside investment to grow.

Cofounder 429

Cofounder Seed Stage Valuation Metrics 429

Austin Startup

MAY 19, 2018

 —  @birsic So without further ado, here are my thoughts on some dos and don’ts for early stage investors. The bottom line is that being a seed stage founder is mostly a very thankless job. Don’t boomerang founders If you have specific metrics you look for in early stage companies.

Founder 75

Founder Early Stage Software Review Deal Flow 75

dondodge.typepad.com

JANUARY 15, 2011

Entrepreneurs face some pretty tough questions at a very early stage. How much equity should I grant to early employees? Dont worry about giving up too much equity at an early stage. Posted by: Mario | August 16, 2007 at 05:51 AM Mario, I agree the venture investing landscape is changing. Most startups fail.

Equity 40

Equity Employee Dilution Valuation 40

www.paulgraham.com

OCTOBER 23, 2010

Usually you get seed money from individual rich people called"angels." the seed stage, investors dont expect you to have an elaboratebusiness plan. The next round of funding is the one in which you might deal with actual venture capital firms. A rich companyis one with large revenues. They can take months.

Startup 105

Startup Cofounder Software Stock 105

www.paulgraham.com

APRIL 28, 2010

There never has to be atime when you have no revenues. 4 ] Seed Funding Firms Seed firms are like angels in that they invest relatively smallamounts at early stages, but like VCs in that theyre companiesthat do it as a business, rather than individuals making occasionalinvestments on the side.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

David Teten

MARCH 18, 2021

A typical VC thesis: “we invest in tech startups in Europe at an early stage” However, our experience shows that in many cases: . Thirty-four VC firms in OpenVC call themselves “early-stage” Yet, 30% of those don’t actually invest in pre-revenue startups. of venture capital deals.

Technical Review 78

Technical Review Cofounder Venture Capital Deal Flow 78

Seeing Both Sides

SEPTEMBER 15, 2015

To answer these questions, we built a database of 112 Israeli companies founded between 1996 and 2013 that have met or exceeded $20 million in revenue. Understanding the market and establishing product/market fit is a critical seed-stage milestone. What are the challenges and lessons of scaling up? Partner with Foreign VCs.

Cofounder 20

Cofounder Technical Review United States 20

www.currentlyobsessed.com

MAY 28, 2010

Snapvine was my first experience being in the driver’s seat of the fund-raising process, and in the 3 years prior to our acquisition we raised over $10mm in venture capital. It hardly deserves any attention at all in the early stages. Or is it? I know this sounds crazy, but it’s not.

Valuation 42

Valuation Channel Pre-Money Valuation Term Sheet 42

mashable.com

NOVEMBER 3, 2010

This dynamic births serial entrepreneurs and motivates angels and venture capitalists to pull their friends into investment deals. For the first-time entrepreneur or founder looking for seed stage funding, this circle can be especially difficult to penetrate. What follows is the best advice and tips from these interviews.

Angel Investor 80

Angel Investor Startup San Francisco Social Media 80

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. Technology riches yield bumper crops in venture capital with new firms and new largesses – the rewards of LPs rediscovering our asset class. Are LPs to blame?

IPO 150

IPO Venture Capital LP SEC 150

VC Cafe

JULY 8, 2012

Angellist Talent - Whether you are browsing for startups or talent, with 23,971 startups, AngelList is one of the most active communities for early stage founders. link] - job site dedicated to recruiting exceptional talent to venture capital backed companies. link] - a free job board for startups.

Cofounder 149

Cofounder Founder Startup Seed Stage 149