Both Sides of the Table

DECEMBER 11, 2022

Something happened in the past 7 years in the startup and venture capital world that I hadn’t experienced since the late 90’s — we all began praying to the God of Valuation. And then in the late 90’s money crept in, swept in to town by public markets, instant wealth and an absurd sky-rocketing of valuations based on no reasonable metrics.

Valuation 466

Valuation San Francisco Ratchet Liquidation Preference 466

K9 Ventures

JUNE 5, 2015

Low supply of companies with traction drove the valuations and deal sizes up. In addition, the competition for and the cost of hiring people, especially in the San Francisco Bay Area, has gone up dramatically. Valuations are rising to match. The risk here is what I refer to as the curse of over-capitalization.

Seed Stage 48

Seed Stage Venture Capital Early Stage Valuation 48

VC Cafe

OCTOBER 31, 2022

But even in the seed market the bar could get higher: I wouldn’t be surprised to see valuations drop and for VCs to have rising expectations about the level of traction they expect to see before funding. Two weeks ago in San Francisco, a conversation with tech lawyers from the US and Europe was a confirmation of what I read in the news.

Founder 173

Founder Technical Review Down Round Liquidation Preference 173

Scott Edward Walker

AUGUST 31, 2011

Please shoot me any questions you may have in the comments section – or feel free to call me directly at 415-979-9998 (San Francisco) or 310-288-6667 (Los Angeles). At what valuation and on what terms? He will also help diligence the investors to make sure you choose the right partner for your startup.

Silicon Valley 45

Silicon Valley Term Sheet Liquidation Preference Redemption 45