Up and Running

SEPTEMBER 5, 2017

At the outset, it is worth noting that when it comes to the world of venture funding, I am a bit of an outsider. Until a handful of years ago, I didn’t even know what venture capital was, let alone anything about the complicated process of actually acquiring VC funding. percent of venture capital deals, and received.33

Venture Capital 82

Venture Capital Lean Cofounder Technical Review 82

Both Sides of the Table

FEBRUARY 12, 2019

Over the past month a colleague ( Chang Xu ) and I sifted through data on the venture capital industry (as we do every year) and made a bunch of calls to VCs and LPs to confirm our hypotheses. As a result of the IPO window shifting we saw a massive inflow of public-market capital into the latest stages of venture.

Venture Capital 328

Venture Capital Technical Review Seed Stage IPO 328

Both Sides of the Table

SEPTEMBER 22, 2012

I think I’ve read Paul Graham’s post on “ Startup = Growth ” three or four times now. Viewing the article through the lens of a venture capitalist there’s much to agree with under the mantra of “growth!” Eventually a successful startup will grow into a big company. Growth, again.

Silicon Valley 390

Silicon Valley Venture Capital Startup Technical Review 390

Startup Professionals Musings

SEPTEMBER 8, 2019

Obviously, these companies still need money to get started, or finance growth, just like a for-profit company. Hopefully you can see from this list that the people and processes involved in financing a nonprofit have little in common with angel investors, or the venture capital process.

Equity 235

Equity Angel Investor Technical Review Exit Strategy 235

Both Sides of the Table

JULY 23, 2014

There has been much discussion in the past few years of the changing structure of the venture capital industry. The rise of alternative sources of capital (crowd funding and the like). We are in a bubble (with so many private $1bn+ valuations). On the surface the narratives have been. Where are we today? billion). .”

Technical Review 398

Technical Review Venture Capital Valuation Pre-Money Valuation 398

ReadWriteStart

JUNE 1, 2020

I have often been asked about Startup Funding by entrepreneurs. Many myths surround the subject of startup funding. Here is Startup Funding, a Comprehensive Guide for Entrepreneurs. You must have seen a lot of startups giving out promotions, discounts, and incentives at the early phase of their business. Debt investors.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

YoungUpstarts

JUNE 26, 2020

by Rizwan Virk, author of “ Startup Myths and Models: What You Won’t Learn in Business School “. If you are building a startup, you’ll find no shortage of people who are willing to give you advice, particularly when it comes to raising financing. My first institutional financing came from people who were in the “MIT” network.

Finance 205

Finance Silicon Valley Valuation Startup 205

Both Sides of the Table

MAY 28, 2018

Conversely many VCs believe that constraining cash can often lead to increases in creative solutions at a startup. A VC wants to know that you have a solid plan to execute a stand-alone business and if you require capital for an acquisition they’d rather evaluate it at the time rather than over-fund you now.

Burn Rate 247

Burn Rate Valuation Pre-Money Valuation Dilution 247

Both Sides of the Table

SEPTEMBER 18, 2014

On the phone … Me: So, you raised venture capital? It’s like we need a finance 101 course for entrepreneurs. Me: There is no rational explanation for valuations of A round companies by ANY objective financial measure. People seem concerned about valuation. We raised a seed round. About $1 million.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Steve Blank

APRIL 26, 2022

At the turn of the century after the dotcom crash, startup valuations plummeted, burn rates were unsustainable, and startups were quickly running out of cash. Except, that is, for the bottom feeders of the Venture Capital business – investors who “ cram down ” their companies. They’re Back. Why do VCs Do This?

Cram Down 404

Cram Down Founder Venture Capital Recapitalization 404

Both Sides of the Table

SEPTEMBER 10, 2021

And the loosening of federal monetary policies, particularly in the US, has pushed more dollars into the venture ecosystems at every stage of financing. how on Earth could the venture capital market stand still? What Has Changed in Financing? even before the pandemic itself has been fully tamed. Of course we can’t.

Pre-Money Valuation 471

Pre-Money Valuation Valuation Venture Capital Early Stage 471

View from Seed

DECEMBER 4, 2019

Over the last 10 years, we’ve been in a bull market with considerable froth in late stage financing activity and valuations. For example, a $10B endowment might be looking to have 10% ($1B) allocated to venture capital at any one time. This would suggest that TVPI would be performing well.

LP 256

LP IRR Distribution Portfolio 256

Both Sides of the Table

FEBRUARY 6, 2017

It was only a year ago that many in the Venture Capital industry were predicting that “winter was coming” and to be fair the author of this post was chief amongst them. This past year was also the year that startup boards also got more disciplined about containing burn rates and pushing for companies to be run more pragmatically.

Venture Capital 150

Venture Capital Saudi Arabia Kuwait Burn Rate 150

Women Entrepreneurs Can

NOVEMBER 19, 2022

A Venture Capital Firm is a firm that invests in startups and early-stage companies. However, not all firms are venture capital firms. Investing in a startup company carries a high degree of risk, particularly at the early stage. This allows you to skip the complicated valuation calculations.

Venture Capital 52

Venture Capital Early Stage Liquidity Event SEC 52

Both Sides of the Table

APRIL 26, 2016

There has been a lot of public debate over the past several weeks about whether it’s a good thing to be “gross margin positive” or not and commentary always reminds me that some people at startups don’t quite understand financial metrics or even how to think about which ones are healthy. That is what finances rapid growth.

Metrics 150

Metrics Cost Acquisition Startup 150

Steve Blank

APRIL 12, 2013

I just spent a few weeks in Japan and China on a book tour for the Japanese and Chinese versions of the Startup Owners Manual. This post is about the rise of Chinese venture capital and how it helped build the countries entrepreneurial ecosystem. The Rise of Chinese Venture Capital. All the usual caveats apply.

Venture Capital 271

Venture Capital China Offshore SBIR 271

Both Sides of the Table

JUNE 5, 2011

2 preamble issues having read the comments on TC today: 1: I know that the prices of startup companies is much great in Silicon Valley than in smaller towns / less tech focused areas in the US and the US prices higher than many foreign markets. As the risks below get eliminated the higher the valuation investors are prepared to pay.

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336

View from Seed

MARCH 24, 2021

At NextView Ventures we have written many pieces about venture capital — how to raise it, build your business, engage with investors, iterate your product, navigate expanding industries, etc. Free Template for Great Startup Pitch Decks, Direct from VCs. What Are Your Valuation Expectations? Happy reading!

Seed Stage 177

Seed Stage Hiring IPO Analytics 177

Startup Professionals Musings

FEBRUARY 15, 2015

Obviously, these companies still need money to get started, or finance growth, just like a for-profit company. Hopefully you can see from this list that the people and processes involved in financing a non-profit have little in common with Angel investors, or the venture capital process. That’s a higher calling.

Angel Investor 120

Angel Investor Equity Technical Review Exit Strategy 120

Both Sides of the Table

JUNE 28, 2018

Until recently it was headquartered 2 blocks from our offices in Santa Monica so we literally saw it emerge under our feet and we proudly invested in the last 3 rounds of financing. Today the company officially announced its most recent round of capital ?—?having Forget the valuation?—?I having raised $300 million?—?less

San Francisco 256

San Francisco Valuation Technical Review Los Angeles 256

David Teten

JANUARY 19, 2021

More and more startups are pursuing Revenue-Based VCs , but “RBI” doesn’t fit everyone. Similar to the explosion of seed funds in the past decade, we (and some limited partners too ) believe these Flexible VCs are on the forefront of what will become a major segment of the venture ecosystem. Of the Inc. 5000 companies, only 6.5%

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Startup Professionals Musings

JUNE 5, 2021

In finance, a bubble is too much money chasing assets, greater asset production and a herd mentality. In startup business plans, a bubble is too many entrepreneurs and too many investors chasing the latest “next big thing,” like Google search engine, Facebook social network, or Amazon e-commerce site. High valuation, low profit.

Demand 362

Demand Government Venture Capital Valuation 362

ReadWriteStart

SEPTEMBER 9, 2019

Virtually every startup has to find funding somewhere. Although some founders take venture capital in exchange for equity, that’s not the only way to do it. To learn more about the pros and cons of venture capital — and founders’ funding alternatives — I caught up with Mark McKee. Why or why not? Oftentimes, it is.

Venture Capital 105

Venture Capital Equity SBA Finance 105

Startup Professionals Musings

APRIL 24, 2011

I just read the Q1 2011 report from CB Insights , which shows venture capital is back. billion to work across 738 financing deals with U.S. billion jump in funding over the same quarter of 2010 with a similar number of deals, so it clearly shows a trend to larger deal sizes for fewer startups. Overall, investors put $7.5

Venture Capital 233

Venture Capital Revenue Elevator Pitch Silicon Valley 233

Both Sides of the Table

JUNE 22, 2011

In addition to FOMO it is partly driven by massive increase in valuations for earlier-stage companies who raised money at bit seed prices but who still have product risk. million pre-money valuation is now raising $1 million at a $12 million valuation the next investor has nowhere to go but up (or sit out the investment).

Saudi Arabia 309

Saudi Arabia Valuation IPO Technical Review 309

The Equity Kicker

DECEMBER 6, 2013

Venturebeat reported yesterday that US startup valuations have reached ten year highs. You can see from the charts above that median valuations have been increasing at all stages from seed through to Series D or later. Venture Capital'

Valuation 162

Valuation Venture Capital Startup Europe 162

David Teten

AUGUST 20, 2019

I’ve been a traditional equity VC for 8 years, and I’m now researching new business models in venture capital. I have been impressed by how these venture capitalists are accomplishing a major social impact goal…without even trying to. I contacted every RBI venture capital investor I could identify, and learned: .

Revenue 60

Revenue Cofounder Founder Venture Capital 60

Startup Professionals Musings

SEPTEMBER 20, 2017

Obviously, these companies still need money to get started, or finance growth, just like a for-profit company. Hopefully you can see from this list that the people and processes involved in financing a nonprofit have little in common with angel investors, or the venture capital process.

Angel Investor 132

Angel Investor Equity Technical Review Exit Strategy 132

Tim Keane

JANUARY 12, 2010

Startups and angels: Along the way to success. Term-sheets and Valuations: Thinking about Negotiations. The Valuation Question. When companies seeking their first round of serious funding are good enough to receive a term-sheet from an investor, the first issue that always arises is valuation. Let’s start at the end.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Both Sides of the Table

AUGUST 12, 2010

In the technology world there are a few websites that most startups track to keep up with the latest financings, acquisitions, product announcements and gossip: BusinessInsider, TechCrunch, Mashable, GigaOm, etc. Specifically we talked about Slide having gotten a $550 million valuation before being sold to Google for $182 million.

Seed Stage 232

Seed Stage Valuation Private Equity Venture Capital 232

Steve Blank

APRIL 12, 2013

I just spent a few weeks in Japan and China on a book tour for the Japanese and Chinese versions of the Startup Owners Manual. This post is about the rise of Chinese venture capital and how it helped build the countries entrepreneurial ecosystem. The Rise of Chinese Venture Capital. All the usual caveats apply.

Venture Capital 163

Venture Capital China Offshore SBIR 163

The Startup Magazine

JANUARY 17, 2024

Ready to dive deep into the exhilarating world of startup investment? Today we’re going to embark on an epic journey towards securing the financial backing your brilliant startup deserves. To make an impression as a startup you must have a crafted strategy of your own. Hey there, budding entrepreneurs!

Due Diligence 125

Due Diligence Angel Investor Syndicate Syndication 125

Up and Running

SEPTEMBER 19, 2017

Capital investments are like gasoline on a startup business’s metaphorical fire. If you’re like most startup CEOs, your startup has been your personal fiefdom and baby. By contrast, obtaining a pre-money valuation of $5 million for a business with a new viable product and even very minimal sales is somewhat reasonable.

Private Equity 94

Private Equity Pre-Money Valuation Equity Startup 94

Both Sides of the Table

MAY 23, 2012

Many observers of the venture capital industry have questioned whether its best days are behind it. I have been close to the tech & startup sectors for more than 20 years and I can’t think of a period in which I felt more optimistic about the innovation and value creation I see in front of us.

Venture Capital 347

Venture Capital Technical Review LP Mobile 347

thebarefootvc

JANUARY 27, 2014

Do I think we are in a valuation bubble? I think that later stage valuations are frothy (for reasons I explain below) while earlier stage valuations are starting to stabilize from previous highs (with the exception of the superstar serial entrepreneur) - turns out scaling in a sea of competition (both startup and entrenched) is not so easy.

Technical Review 63

Technical Review Valuation Venture Capital Investment Bankers 63

VC Cafe

NOVEMBER 30, 2022

Earlier this month we ( Remagine Ventures ) teamed up with Taylor Wessing (a leading UK law firm specialising in tech) on “Into the Metaverse”, a joint event to discuss the opportunities in gaming, crypto/web3 and Metaverse. We wanted to share the perspectives of startups, platforms, investors and brands.

Startup 122

Startup Generative AI Venture Capital Valuation 122

Altgate

DECEMBER 15, 2010

@altgate Startups, Venture Capital & Everything In Between Skip to content Home Furqan Nazeeri (fn@altgate.com) ← No one wants to tell you your baby is ugly More on Liquidation Preferences → Pre-Money Valuation vs Number of Founders Posted on December 15, 2010 by admin Here’s a chart of the day worth sharing.

Pre-Money Valuation 66

Pre-Money Valuation Valuation Cofounder Founder 66