Startup Professionals Musings

JANUARY 19, 2020

Examples of some leaders in this space include Ron Conway in Silicon Valley and Jeff Bezos , CEO of Amazon, who each may have over 500 startups in their portfolio. Super angels sometimes drive up valuations. It’s the right way to get money without giving up too much equity or control of your business.

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ReadWriteStart

JANUARY 29, 2023

When it comes to launching a startup, most founders think they should reside in the United States, Silicon Valley, in particular, to have a successful business. But there are other regions in the world that might not be as fancy as Silicon Valley but have a remarkable potential for growth. This amount can triple by 2025.

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Asia Indonesia Silicon Valley Thailand 171

Up and Running

AUGUST 21, 2017

It’s understandable, then, that the term “unicorn” has come to be used routinely in the world of business funding to refer to those rare and beautiful privately funded startups—especially in the tech space—that have reached the upper echelon of valuation, being valued at over $1 billion. at around 27 million. Bruce is the U.S.

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Silicon Valley Venture Capital Valuation Later Stage 86

Haystack

DECEMBER 29, 2018

And as more economies worldwide seek to shift their investment strategies offshore and seek out technology, hubs like Silicon Valley and Shanghai, among others, have reaped the benefits. by a mile, continued to soar in volume and valuation. Hundreds of new micro funds somehow keep getting into the market.

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Technical Review Venture Capital Russia China 165

View from Seed

APRIL 30, 2015

Below, we talk to Glen Mello , Managing Director of Silicon Valley Bank’s accelerator team in Boston. Glen Mello: Venture debt is a good complement to equity. It’s generally got a lower cost compared to equity capital and can help support growth. What are some pros and cons?

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Term Sheet Equity Startup Seed Stage 120

Agile VC

SEPTEMBER 15, 2011

But if you read the whole article you glean more insight… the entire public equity markets have sunk in the last 3-4 months. The very strongest companies can still likely get out if they really wanted, but may not command the valuations they hoped for in more bullish times. What will happen for the startup IPO market?

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IPO Marketing Silicon Valley Private Equity 100

Up and Running

SEPTEMBER 10, 2014

I don’t have an MBA and I don’t live in Silicon Valley. It leads me to believe the entrepreneur avoided giving up equity as long as possible and now needs capital to get out of a financial crisis. Be realistic about your valuation. You may have heard a valuation should be doubled because investors will cut it in half.

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Angel Investor Technical Review Software Review Accredited Investor 159

Austin Startup

SEPTEMBER 10, 2017

TL;DR: Using a “tiered” valuation cap structure in a convertible note or SAFE can provide flexibility that bridges the gap between (i) what founders expect their company to be worth in the near future, and (ii) what investors are comfortable accepting now. Did you get a “good” valuation? What a valuation cap isn’t.

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Valuation Dilution Silicon Valley Seed Stage 48

crowdSPRING Blog

NOVEMBER 30, 2012

… Checking In on Foursquare’s Valuation – [link]. In Silicon Valley, Technology Talent Gap Threatens G.O.P. Special Report: Silicon Valley’s dirty secret – age bias | Reuters – [link]. Convertible Debt: really Bridge Loans and Equity Replacement Debt – [link].

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Steve Blank

SEPTEMBER 14, 2009

3) invest in and take equity stakes in exchange for capital. Underwriters realized that as long as the public was happy snapping up shares, they could make huge profits on the inflated valuations (regardless of whether or not the company should have ever been public.) Steve Blanks 30 years of Silicon Valley startup advice.

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Silicon Valley IPO Technical Review Venture Capital 217

Agile VC

APRIL 17, 2011

Obviously most of these employees are working hard primarily for equity upside compensation, but Kayak’s personnel costs are roughly $200K/head so the company is highly productive on a per employee basis. Post-money valuation probably no higher than $12M (2). Pre-money valuation was approx. Pre-money valuation was approx.

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Pre-Money Valuation Liquidation Preference Dividend Common Stock 113

crowdSPRING Blog

MAY 9, 2014

Surprising Trends in Startup Founder Equity Stakes | by Tomasz Tunguz – crowdspring.co/1njnhbl. Top Venture Capitalists Leave Silicon Valley, Bet Their Careers On Midwest – crowdspring.co/SEC1rh. Unfortunately, SaaS Start-Up Valuations Are About To Fall by 50% | saastr – crowdspring.co/1j3n4bO.

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Social Media Small Business Design Media 93

Growthink Blog

APRIL 25, 2011

On Friday Silicon Valley Bank released a survey of 375 executives at startup technology companies in the 4 core venture capital investment sectors – Software/Internet, Hardware, Life Science, and Cleantech. Here is what they found: Tech. Are Bullish. To download this complimentary report, please click here.

Silicon Valley 69

Silicon Valley Ratchet Private Equity Startup 69

Startup Professionals Musings

DECEMBER 27, 2014

Examples of some leaders in this space include Ron Conway in Silicon Valley and Brian Cohen , chairman of the New York Angels, who each may have over 500 startups in their portfolio. Super Angels sometimes drive up valuations. It’s the right way to get money without giving up too much equity or control of your business.

Angel Investor 260

Angel Investor Silicon Valley Startup Portfolio 260

Both Sides of the Table

MAY 19, 2010

Current round: $35mm in Series C (extension of Series B at higher valuation) from General Atlantic, Matrix Partners. We both loved this company (and lamented the fact that we weren’t investors since they were founded in LA before relocating to Silicon Valley). Read more: TechCrunch , Reg Form D , WSJ interview w/ Susan Lyne.

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Hippoland

JANUARY 4, 2017

Equity Traditionally, investors have invested in companies to receive equity, or shares in a company. The concept of equity rounds (also called priced rounds) is very straightforward. And as you raise money at later stages, you will most likely be raising equity rounds. The results are binary.

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Convertible Security Equity Security Silicon Valley 48

500hats.com

AUGUST 2, 2012

Or, as my friend Marc Andreessen might say, Software Eats the Private Equity World. note: apologies in advance for the west coast bias; i’m in silicon valley). However, while YC was growing in prominence & valuation, and scaling the # of companies it was funding every 6 months, something else happened.

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Silicon Valley Early Stage Venture Capital Valuation 74

ReadWriteStart

SEPTEMBER 10, 2010

Whether it is credit or equity, funding is very, very tight. Because customer financing equals revenue, not equity. Why not go further, develop more valuation, customer experience, and really, deeply validate the business? Sramana Mitra is a technology entrepreneur and strategy consultant in Silicon Valley.

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Cloud Silicon Valley Incubator Finance 115

Startup Professionals Musings

OCTOBER 17, 2016

According to the National Business Incubator Association ( NBIA ), there are over 7,000 of these locations worldwide, and new online versions springing up all over the place, like Founders Space in Silicon Valley. Direct seed funding, for a share of the equity, and introductions to investors.

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Incubator Silicon Valley Startup Small Business Administration 120

Startup Professionals Musings

SEPTEMBER 1, 2014

But there are notable examples of for-profit incubators that are thriving, including YCombinator , led by Paul Graham in Silicon Valley, and TechStars , led by David Cohen and located in several key cities around the country, that have an excellent reputation and track record. Health, life, and other insurance at group rates.

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Incubator Silicon Valley Startup Small Business Administration 247

Austin Startup

AUGUST 20, 2017

They’re looking to be paid properly in the context of the overall salary structure, including cash, benefits, and equity, and to be paid commensurate with performance. Keep the valuations consistent with company progress. That will keep the Silicon Valley wags buzzing for some time to come. How about your Investors ?

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Technical Review Software Review Cap Table Securities and Exchange Commission 48

Up and Running

SEPTEMBER 5, 2017

Her background includes senior roles in both the banking and tech sectors, and she has launched four data businesses—including her current firm, New Frontier Data , which boasts a $20 million valuation and has received $5 million in funding. While private equity has a history in the U.S. Giadha Aguirre de Carcer via Her Agenda.

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Venture Capital Lean Cofounder Technical Review 82

The Equity Kicker

NOVEMBER 9, 2016

I just read a New York Times article that led with the sentence “Deep inside a Silicon Valley unicorn lurks a time bomb”. Not by much, but by enough that it makes sense for them to accept a liquidation preference in exchange for a higher valuation. Furthermore, provided the instrument is kept simple (i.e.

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Liquidation Preference Silicon Valley Participating Preferred Common Stock 122

Steve Blank

APRIL 12, 2013

Fast forward a decade, today the Private Equity and Venture Capital business is booming in China with over 1000 firms actively investing. Over 100 startups were listed on ChiNext the first year of its launch at sky-high valuations (average of 66 times earnings.) Investing in China Today.

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Venture Capital China Offshore SBIR 271

Venture Chronicles

MAY 26, 2010

Back in March, Ben Horowitz of Andreessen Horowitz wrote a post called The Case For The Fat Startup, where he outlined some of the reasons why a fledging company might want to consider taking a large amount of funding — a strategy that contrasts with the ‘lean startup’ model that has become common in Silicon Valley.

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Lean Early Stage Valuation Startup 40

Austin Startup

JUNE 27, 2017

Valuations in startups increased dramatically during the Dot Com boom and then both valuations and the availability of investment capital nationally collapsed in 2001 with the Dot Com bust and 9/11. But the timing of the launch of these new funds almost assured their failure regardless of their investing acumen.

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Venture Capital Austin Texas Private Equity 54

Gust

DECEMBER 13, 2011

Silicon Valley. Silicon Valley. Typical VC round size is dropping and the competition (as measured by valuation and reported at 2011 Valuation Survey of North American Angel Groups ) for seed stage deals in NYC Metro appears to be increasing. All Seed-VC. New England. Southern California*. Deals. $$$$.

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Seed Stage Southern California San Diego Silicon Valley 162

Scott Edward Walker

NOVEMBER 2, 2011

Split the equity based on prior contributions and expectations going forward, not necessarily equally (see post here ). Don’t issue stock options unless a proper option plan is in place and a valuation has been done in compliance with Section 409A of the Internal Revenue Code (see post here ). None of this is rocket science.

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Accredited Investor Stock Options Delaware Silicon Valley 111

www.mattbartus.com

DECEMBER 9, 2012

A View from the Valley. Perspectives on issues affecting founders, startups and investors from a veteran startup lawyer in Silicon Valley. How to pump up your VC valuation. One possibility is to negotiate a higher valuation and offer warrants (i.e., Home About Matt Client references Contact. — 23 Comments.

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Warrant Valuation Pre-Money Valuation Term Sheet 40

ReadWriteStart

MAY 30, 2022

Sometime in your future, an investor will offer you money in return for equity. One in particular from a famous VC in Silicon Valley. Then you need to retain the lion’s share of equity. The more people you grant equity to, the more complex your payday. But your biggest test of that financial insight is yet to come.

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Bootstrapping Startup Equity Silicon Valley 147

Growthink Blog

OCTOBER 1, 2014

Last week , I wrote about the strong ambition across the globe to have a "Silicon Valley of One''s Own," and to replicate the otherworldly innovation of a region that has produced more than 75% of the World’s Unicorns - technology companies started since 2003 that now have valuations of more than $1 billion.

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Silicon Valley Private Equity Venture Capital IPO 63

Both Sides of the Table

APRIL 25, 2011

There’s a line of thinking in Silicon Valley that you should build product businesses rather than services businesses. The founders could reinvest this in growth (0% tax, focus on future equity growth) or take the profits of $12 million and divide amongst the founding partners. This post originally appeared on TechCrunch.

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Silicon Valley IP Dividend Finance 332

VC Cafe

SEPTEMBER 1, 2011

DoubleVerify recently grabbed headlines for its latest funding round of $33 million led by JMI Equity and Institutional Venture Partners (IVP), based on a $200 million valuation. Amongst the award winners is DoubleVerify , an Israeli startup providing advertising verification services.

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Silicon Valley Valuation Equity Advertising 87

The Equity Kicker

OCTOBER 1, 2013

According to pandodaily , as well as being focused we are also contrarian: Silicon Valley has run away from the ecommerce category. The most common arguments among ecommerce bears are that the sector is over-invested and that late-stage valuations do not map to public company comps and realistic acquisition values.

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Silicon Valley eCommerce Deal Flow Valuation 92

Lightspeed Venture Partners

NOVEMBER 19, 2012

Season 4 of week 10 of Shark Tank was interesting because two of the pitches were for internet businesses that I could imagine seeing in my day job as a Silicon Valley Venture Capitalis t. Interestingly, this new deal actually lowered the pre money valuation for the company.

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Pre-Money Valuation Valuation Alabama Churn Rate 161

The Startup Magazine

MAY 4, 2017

Silicon Valley author, investor and entrepreneur Guy Kawasaki advocates using LinkedIn to look at everyone’s background and find points of common interest that you can use. million valuation ($150,000 for 10 percent equity) in 2008. Also show potential entrants in that space. What is your shield against those?”.

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Silicon Valley Startup Maryland Angel Investor 62

Steve Blank

APRIL 12, 2013

Fast forward a decade, today the Private Equity and Venture Capital business is booming in China with over 1000 firms actively investing. Over 100 startups were listed on ChiNext the first year of its launch at sky-high valuations (average of 66 times earnings.) Investing in China Today.

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Venture Capital China Offshore SBIR 163