Both Sides of the Table

DECEMBER 11, 2022

We had nascent revenues, ridiculous cost structures and unrealistic valuations. Almost no financings, many VCs and tech startups cratered for the second time in less than a decade following the dot com bursting. Until we weren’t. 2001–2007: THE BUILDING YEARS The dot com bubble had burst. Nobody cared about our valuations any more.

Valuation 466

Valuation San Francisco Ratchet Liquidation Preference 466

Tim Keane

JANUARY 12, 2010

For angel groups, the distinction between groups and VCs on this issue is dwindling, especially as angel groups do bigger rounds of financing.   Note that this applies only to earl stage Series A-type equity financings and assumes no cash dividends are paid to investors. . This is why a bottom up approach is more credible.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Rob Go

NOVEMBER 30, 2015

Investing in companies with scaling revenue and tons of momentum means that you are paying high prices, which then means that the investor is either putting more dollars at risk than they would be comfortable with, or living with lower average ownership across their portfolio. Josh Kopelman put it very simply in his post here.

Later Stage 28

Later Stage Marketing Early Stage Ratchet 28