Gust

NOVEMBER 1, 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. It is one of the useful methods for establishing the pre-money valuation of pre-revenue startup ventures. Post-money Valuation = $ 2.125 million. million ÷ 20X.

Venture Capital 161

Venture Capital Valuation Pre-Money Valuation Post-Money Valuation 161

View from Seed

AUGUST 17, 2021

One industry specific example is the strange fascination among some LPs and GPs around term IRR. Even though everyone knows that VC funds take 10+ years to come to fruition, one often can’t help but benchmark themselves based on IRR in the early days. Also, being too dogmatic isn’t very fun J. We think about this a lot too.

IRR 205

IRR Dilution Founder Portfolio 205

View from Seed

AUGUST 17, 2021

One industry specific example is the strange fascination among some LPs and GPs around term IRR. Even though everyone knows that VC funds take 10+ years to come to fruition, one often can’t help but benchmark themselves based on IRR in the early days. Also, being too dogmatic isn’t very fun J. We think about this a lot too.

IRR 156

IRR Dilution Founder Portfolio 156

View from Seed

AUGUST 17, 2021

One industry specific example is the strange fascination among some LPs and GPs around term IRR. Even though everyone knows that VC funds take 10+ years to come to fruition, one often can’t help but benchmark themselves based on IRR in the early days. Also, being too dogmatic isn’t very fun J. We think about this a lot too.

IRR 136

IRR Dilution Founder Portfolio 136

Steve Blank

MARCH 31, 2014

Today’s workforce has radically different expectations, brands are losing their power, physical channels are being destroyed by virtual ones, market share is less important than market creation, and software is eating world. Look at the valuations of companies like Tesla, Illumina, and Twitter.

Private Equity 325

Private Equity Metrics China Intellectual Property 325

Startup Professionals Musings

APRIL 3, 2012

But I have found that making the right choice at the right time can have a major impact on your long-term valuation, and the decision process is complex. Angels typically have simpler term sheets, don’t squeeze so hard on valuations, and are more realistic on time-frames. The money is the same color in either case.

IRR 248

IRR Term Sheet Startup Valuation 248

Startup Professionals Musings

NOVEMBER 11, 2010

Angels typically have simpler term sheets, don’t squeeze so hard on valuations, and are more realistic on time-frames. In addition, most venture capitalists want startups that have clearly defined economies of scale (such as software companies) vs. ones that scale linearly with some factor (such as service companies).

IRR 225

IRR Startup Term Sheet Angel Investor 225