Lightspeed Venture Partners

OCTOBER 7, 2012

This does neither, so I’m out” Cuban said, “I see you guys not as entrepreneurs but as wantrepreneurs” I agree with him. In this way, they remind me of the Lifter Hamper entrepreneur. That’s why most entrepreneurs do not make a specific ask on valuation, but wait to hear offers from investors.

Technical Review 110

Technical Review Technical Cofounder Valuation Pre-Money Valuation 110

Startup Professionals Musings

SEPTEMBER 14, 2010

Entrepreneurs sometimes assume an initial agreement with an angel is a commitment, so they start spending before any money is received. It’s true that angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. Seat on the board.

Term Sheet 227

Term Sheet Pre-Money Valuation Due Diligence Post-Money Valuation 227

Both Sides of the Table

JULY 27, 2014

I recently attended and presented at Dave McClure’s PreMoney conference in San Francisco. We both are concerned about non-traditional capital entering the late stages and the impact that may have in the next downturn in the economy to the startups who merely trying to optimize for short-term valuation maximization. And we ended.

Valuation 309

Valuation Pre-Money Valuation Later Stage Non-Compete 309

Gust

SEPTEMBER 27, 2014

To begin with, it is important to understand some basic facts about the world of entrepreneurial finance: There are many more entrepreneurs than there are investors, with the result that only one company out of every 400 that seeks venture funding actually receives it.

Angel Groups 159

Angel Groups Elevator Pitch Software Review Deal Flow 159

Tim Keane

JANUARY 12, 2010

Term-sheets and Valuations: Thinking about Negotiations. Please see later version of this post on May 16, 2010 Entrepreneurs are often not experts in the area of term-sheet negotiations and all of the surrounding issues.   Investors sometimes “present” the terms they’d like and expect the entrepreneurs to react.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Gust

OCTOBER 17, 2011

Entrepreneurs sometimes assume an initial agreement with an angel is a commitment, so they start spending before any money is received. It’s true that angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. Seat on the board.

Term Sheet 158

Term Sheet Pre-Money Valuation Due Diligence Post-Money Valuation 158

The Equity Kicker

APRIL 10, 2015

From the perspective of existing investors the right way to calculate the valuation multiple is to compare the pre-money valuation of the new round with the post-money valuation of the last round, which is the same as the increase in share price. (As

Valuation 60

Valuation Pre-Money Valuation Post-Money Valuation Option Pool 60

Lightspeed Venture Partners

OCTOBER 22, 2012

The first company to present was an LA based food truck selling fresh Maine lobster rolls, founded by two cousins, Saban Lomac and Jim Tselikis. This implies a pre money valuation of $1.045M. See my breakdown of week 2 for more on how to calculate pre money valuation.). Cousins Maine Lobster.

Pre-Money Valuation 101

Pre-Money Valuation Valuation Dilution Differentiation 101

Both Sides of the Table

FEBRUARY 4, 2016

The full presentation & data can be downloaded on SlideShare. Limited Partners (LPs) who invest in VC funds have continued to pour money into venture – with the market returning to pre-recession levels. The result of all of this new money? State of the Market. Upfront vc analysis 2016 from Mark Suster.

LP 150

LP Valuation Burn Rate Pre-Money Valuation 150

The Startup Magazine

SEPTEMBER 12, 2019

Realistically, VCs expect 90% of their ventures to fail, but entrepreneurs expect 100% of their ventures to succeed. As an entrepreneur, the fewer external capital pressures you have, the more time you have to listen closely to the market and pivot at every opportunity to cater to the stakeholders that matter the most.

Early Stage 84

Early Stage Venture Capital Bootstrapping Pre-Money Valuation 84

Professor VC

JANUARY 17, 2008

I think the title of this post is a TV show, but fitting as there has been much debate in the venture community as to the whether angel investors are good or bad for entrepreneurs and VCs. One group charges entrepreneurs "an administrative fee" to present to the group. Touched by an Angel.

Pre-Money Valuation 28

Pre-Money Valuation Angel Investor Angel Groups Valuation 28

Berkonomics

SEPTEMBER 27, 2018

After presenting a “state of the company” report at a national meeting of resellers for a company where I sat on the board, I was approached by one of the audience members, complimenting my presentation and stating, “I have a problem. Our entrepreneur balked at the boldness of that statement. The background for my story.

Pre-Money Valuation 48

Pre-Money Valuation Sales Liquidity Event Valuation 48

Berkonomics

SEPTEMBER 17, 2011

After presenting a “state of the company” report at a national meeting of resellers for a company where I sat on the board, I was approached by one of the audience members, complimenting my presentation and stating, “I have a problem. First here is a bit of the background. The year was 1998. And a month later the bubble burst.

Liquidity Event 59

Liquidity Event Pre-Money Valuation Sales Valuation 59

VC Cafe

SEPTEMBER 26, 2022

The past year was a wild ride for startups and founders, giving a whole new meaning to the ”rollercoaster” aspect of being an entrepreneur. For more about forecasting growth in these uncertain times, check out Sequoia’s “ Adapting to Endure ” presentations published in May 2022. Our goals, their goals.

Founder 187

Founder Startup Valuation Pre-Money Valuation 187

dondodge.typepad.com

JANUARY 15, 2011

Community is more powerful than money or technology » August 11, 2007 How much equity for investors and employees? Entrepreneurs face some pretty tough questions at a very early stage. Should I take Angel or VC money? How much money should I raise? Talk to other entrepreneurs - These are tough questions.

Equity 40

Equity Employee Dilution Valuation 40

venturehacks.com

OCTOBER 21, 2010

If you don’t keep your eyes on the option pool while you’re negotiating valuation, your investors will have you playing (and losing) a game that we like to call: Option Pool Shuffle You have successfully negotiated a $2M investment on a $8M pre-money valuation by pitting the famous Blue Shirt Capital against Herd Mentality Management.

Option Pool 68

Option Pool Pre-Money Valuation Dilution Warrant 68

David Teten

NOVEMBER 15, 2013

I have frequently heard the expression from other investors, “We can put a lot of money to work here.” This is the psychology that drives VCs to load up a company with more capital, rationalizing that $5m at a $20m pre-money valuation is little different than $10m at a $40m pre-money valuation.

Management 114

Management Pre-Money Valuation Venture Capital New Hampshire 114

Business Plan Blog

DECEMBER 26, 2013

The entrepreneur will need to be ready and able to respond to due diligence information requests. This process may include the provision of various scenarios on revenues and costs as the investors validate forecasts initially presented. Pre-money valuation. Amount to be invested. Type of security and structure.

Angel Investor 51

Angel Investor Due Diligence Pre-Money Valuation Angel Groups 51

Startup Lessons Learned

JUNE 19, 2019

So the venture process was all about trying to figure out whether or not people could deliver what they said they could, and you typically invested as early as possible at a $5 million pre-money valuation, hoping the company would be worth $500 million, in which case you'd make 20 to 30 times your money. Most hedge.

Silicon Valley 159

Silicon Valley Lean Venture Capital Pre-Money Valuation 159