Both Sides of the Table
JULY 22, 2010
I couldn’t understand why they wanted so many options until a friend pointed out that this just lowered their “true&# pre-money valuation (they also asked for some sharp elbowed terms in the deal). So they agreed to match True’s term sheet. I turned them down. They were nonplussed. No gotchas.
This is going to be BIG.
JULY 30, 2015
Toss in a few acqui-hires in the $6-8mm post seed. So, if that was the case, and the market was competitive, why wouldn't each VC be bidding up a round up until the point where they could get the return that matches their own cost of capital? I assumed the following: Seeds are done as a $1mm round on a pre-money valuation of $5mm.
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www.paulgraham.com
OCTOBER 23, 2010
They all use the same simple-minded model.They seem to have approached the problem by thinking about how todo database matches instead of how dating works in the real world.An Andyet theres a lot of money at stake. One of the best tricks I learned during our startup was a rule for deciding who to hire. Thereis no rational way.
This is going to be BIG.
SEPTEMBER 7, 2012
I think I'm terrific at helping early stage teams by rolling up my sleeves and doing what's necessary--getting them hires, PR, product strategy help to find that market fit. If you're investing at pre-money valuations in the low to mid single digits, then how much worse can the next round even get? Down from what?
www.currentlyobsessed.com
MAY 28, 2010
Instead of “We are worth about $5m because we have done XYZ and we need to raise $1m, so let’s sell 20%&# it’s better to think about valuation as an output variable, like “Let’s raise $2mm and sell 33%, our (pre-money) valuation is therefore $4mm.&# Future value is key.
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