Both Sides of the Table

article thumbnail

What Does the Post Crash VC Market Look Like?

Both Sides of the Table

We drew this conclusion after a meeting we had with Morgan Stanley where they showed us historical 15 & 20 year valuation trends and we all discussed what we thought this meant. But rest assured valuations get reset. First in late-stage tech companies and then it will filter back to Growth and then A and ultimately Seed Rounds.

article thumbnail

The Importance of Proprietary Deal Flow in Early-Stage VC

Both Sides of the Table

As an early-stage investor that is not always aligned with my goal, which I would express as, “pay the right price for the stage & risk in a way that is fair to the founders yet preserves our ability to grow into our valuation at the next financing event.” I’ll take messy and hard work any day. *.

Deal Flow 347
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Why Early-Stage VCs Should Be Careful About Intros from Bankers

Both Sides of the Table

There is one source I never liked and no early-stage VC should – investment bankers. But as a source of deal flow it is last on my list and both entrepreneurs and VCs should be careful about working with bankers on an early-stage (seed, a-round) deal. [no, They are venture bankers not investment bankers.

article thumbnail

Want to Know How VC’s Calculate Valuation Differently from Founders?

Both Sides of the Table

Other founders, “as a privately held company we don’t disclose our valuation.&# Me, “dude, I’m not a journalist. I just want to figure out what a fair valuation is.&# I figured all the VC’s talked so we should. This starts with understanding how VCs and entrepreneurs often see valuation differently.

Valuation 405
article thumbnail

Why Raising Too Much Money Can Harm Your Startup

Both Sides of the Table

How much you raise determines valuation I know it sounds crazy but at the earliest stages of a company your valuation often is determined by how much money you raise. A $15–20 million valuation sounds better than an $8 million valuation, doesn’t it? But it’s actually not that silly.

article thumbnail

How Much Should You Raise in Your VC Round? And What is a VC Looking at in Your Model?

Both Sides of the Table

There’s a quick litmus-test conversation any early-stage VC will have with the founder and it’s one that you should be as prepared for as your elevator pitch. It’s true that some later-stage private equity firms like to fund “roll ups” (a company that acquires many related companies in it sector), but this is seldom the domain of VCs.

Burn Rate 247
article thumbnail

How to Talk About Valuation When a VC Asks

Both Sides of the Table

I thought I’d write a post about how to talk about valuation at a startup and give you some sense of what might be on the mind of the person considering funding you. It’s not uncommon for a VC to ask you how much capital you’ve raised and what the post-money valuation was on your last round. is to start with just the data.

Valuation 324