Gust
NOVEMBER 2, 2011
We recently started a series of posts on establishing the pre-money valuation of pre-revenue startup companies for purposes of investment by seed and startup investors. Dave’s valuation model first appeared in a book published by Harvard’s Howard Stevenson in the middle nineties. Add to Pre-money Valuation.
Tim Keane
JANUARY 12, 2010
Investors sometimes “present” the terms they’d like and expect the entrepreneurs to react. Now that I’m more often on the other side of the term-sheet, I’ve tried to present term-sheets to entrepreneurs accompanied by a philosophical explanation of what I’m proposing, and why. This is why a bottom up approach is more credible.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
VC Cafe
SEPTEMBER 26, 2022
For more about forecasting growth in these uncertain times, check out Sequoia’s “ Adapting to Endure ” presentations published in May 2022. ValuatIon should be a function of value, not ego. Kawasaki’s Law of Pre-Money Valuation: for every full-time engineer, add $500,000; for every full-time M.B.A.,
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.
Business Plan Blog
DECEMBER 26, 2013
This process may include the provision of various scenarios on revenues and costs as the investors validate forecasts initially presented. Pre-money valuation. The term sheet is a legally binding document and should include the following elements: - Offer terms, such as: Company, founder and investor details.
Expert insights. Personalized for you.
79 
Let's personalize your content