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Praying to the God of Valuation

Both Sides of the Table

Something happened in the past 7 years in the startup and venture capital world that I hadn’t experienced since the late 90’s — we all began praying to the God of Valuation. How might our next phase of the journey seem brighter, even with more uncertain days for startups and capital markets? Nobody cared about our valuations any more.

Valuation 466
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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. When you look at how much median valuations were driven up in the past 5 years alone it’s bananas.

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Rules of Thumb Business Valuation Methods Explained

Up and Running

In order to avoid formal valuation report costs, shareholders utilize benchmarks of the industry and rules of thumb to estimate the ballpark values of their interests. This article will cover all about the rule of thumb business valuation approaches, when to use them, and their pros and cons. Rules of thumb and business valuation.

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Arif Bhalwani, CEO of Third Eye Capital, on the ‘Golden Age’ of the Private Credit Market

The Startup Magazine

TEC is one of Canada’s largest and most experienced private credit firms, specializing in providing asset-based capital solutions to companies that are underserved or overlooked by traditional sources of financing, primarily banks. The increasing importance of private credit in today’s market cannot be overstated.

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Seed Stage Funding 101: What it Is & How it Works

The Startup Magazine

The following is a condensed explanation of seed funding: Seed money is a form of early-stage financing that new businesses receive from investors in exchange for a share of ownership in the company. It is necessary to cover the early stages of product development, thorough market research, and other processes during the initial step.

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Revisiting Paul Graham’s “High Resolution” Financing

Both Sides of the Table

When I first read Paul Graham’s blog post on “High Resolution&# Financing I read it as a treatise arguing that convertible notes are better than equity. Markets always evolve toward higher resolution. Either would be fine with startups, so long as they can easily change their valuation. Photo credit: D.

Finance 286
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Why Raising Too Much Money Can Harm Your Startup

Both Sides of the Table

You will build out features or expend to platforms — often before you have enough market feedback to warrant it. My analogy was that there are markets where it’s relatively easier to raise capital and therefore you should take a little bit more but you should create a budget where you only spend 70% of what you raise on a pace of 18 months.