Both Sides of the Table

MAY 28, 2018

Of course the VC is looking to have specificity in how you plan to spend the money you’re going to raise and plans that show a pie chart that says, “25% on marketing, 30% on technology and R&D, 20% on infrastructure, 25% on G&A” do not get funded. Yes, I see plans this pedestrian. You might not like this?—?but

Burn Rate 247

Burn Rate Valuation Pre-Money Valuation Dilution 247

Agile VC

APRIL 17, 2011

Last week ZipCar began trading and has a market cap of about $1 billion. Only 7% of the search queries are performed by users referred by search engines, meaning Kayak’s brand is very strong and they continue to build it ($39M spent in 2010 on brand advertising, nearly $92M in total marketing spend). Quinstreet priced at $15.00/sh

Pre-Money Valuation 113

Pre-Money Valuation Liquidation Preference Dividend Common Stock 113

Both Sides of the Table

JULY 23, 2014

We are in a bubble (with so many private $1bn+ valuations). 15 years ago we were at the peak of Internet hype with the launch of many over-capitalized businesses with a market size & opportunity was limited. The VC market has right-sized (returned back to mid 90′s levels & less competition). Where are we today?

Technical Review 398

Technical Review Venture Capital Valuation Pre-Money Valuation 398

Up and Running

SEPTEMBER 19, 2017

That’s because obtaining a pre-money valuation for a concept level technology company in excess of $1 million is difficult, particularly for a startup founder without a proven track record. So, even if it’s not perfect, get a viable product out into the market (and label it beta if you need to) prior to seeking PE funding.

Private Equity 94

Private Equity Pre-Money Valuation Equity Startup 94

Lightspeed Venture Partners

OCTOBER 29, 2012

The company sought to raise $125,000 for 25% of the comapny, implying a $375,000 pre money valuation. Unsurprisingly, all the sharks passed, based on market size and valuation expectations. They did not have any meaningful proof of product-market fit. This is a very niche market.

Pre-Money Valuation 97

Pre-Money Valuation Offshore Valuation Cofounder 97

View from Seed

AUGUST 30, 2019

team, market, product, stage/traction) but also the potential deal itself (i.e. how much the company is raising, valuation expectations, round/syndicate dynamics, etc.). I can see this being a doable deal at an $X pre-money valuation with a $Y check from us. ” .

Pre-Money Valuation 174

Pre-Money Valuation Syndicate Syndication Valuation 174

Altgate

DECEMBER 16, 2010

@altgate Startups, Venture Capital & Everything In Between Skip to content Home Furqan Nazeeri (fn@altgate.com) ← Pre-Money Valuation vs Number of Founders Where Do Tech VCs Invest? But first, let’s look at pre-money valuation by liquidation preference.

Liquidation Preference 39

Liquidation Preference Pre-Money Valuation Term Sheet Valuation 39

SoCal CTO

SEPTEMBER 27, 2011

I've talked about this topic before in How Investors Think About Valuation of Pre-Revenue Startups. You can also take a look at StartupRoar 's topics: Startup Valuation , Pre-Money Valuation , and Early Stage Valuation. Same Value for Sweat Equity as Investment Dollars?

Early Stage 391

Early Stage Equity CTO Hire Sweat Equity 391

Both Sides of the Table

APRIL 20, 2011

Twitter wanted to raise money for this new venture at a pre-money valuation which was quite a bit higher than First Round’s $10 million limit. First Round Capital’s pre-money range is usually between $3-5 million. Then they consider if it is a big enough market. To say something that is not credible.

Pre-Money Valuation 284

Pre-Money Valuation Technical Review Cofounder Cram Down 284

Both Sides of the Table

JUNE 22, 2011

They have seen one side of a market where many of us have seen the ebb and flow multiple times. Still, market amnesia by ordinarily rational actors always surprises me. I believe a bubble occurs when a market is willing to pay greater than intrinsic value for an asset class. I spoke about a lot of things during the keynote.

Saudi Arabia 309

Saudi Arabia Valuation IPO Technical Review 309

Both Sides of the Table

AUGUST 23, 2010

If I’m totally honest it started as a marketing exercise. I’m the same but without a big following and without wanting to put in the effort to market myself to create a community I can achieve what I need to on Quora. At an $86 million, pre-money valuation Benchmark sure did pay up for this investment.

Silicon Valley 301

Silicon Valley Pre-Money Valuation Technical Review Software Review 301

Startup Professionals Musings

NOVEMBER 26, 2012

The founders now need a $1M Angel investment to do the marketing for a national NewCo rollout, build a team to manage the rollout, and maybe even pay themselves a salary. How much is NewCo worth to investors at this point (pre-money valuation)? Look at the size of the market, and the growth projections for your sector.

Valuation 270

Valuation Pre-Money Valuation NPV Intellectual Property 270

Austin Startup

JUNE 21, 2018

Our pre-money valuation for the seed round is 2 trillion dollars.” Transaction costs, while not always monetary, affect our willingness to buy, sell, and engage in a market. For example, bitcoin makes it possible to transfer money between parties without fees, or oversight from your bank, government, etc.

Securities and Exchange Commission 61

Securities and Exchange Commission SEC Pre-Money Valuation Security 61

Lightspeed Venture Partners

SEPTEMBER 21, 2013

Josh Brooks, who ran marketing for MySpace for three years, is the founder of a company that lets users take photos form their phones, and then use those photos to send postcards in the real world to their friends and family. pre money valuation and planned to use the money to market the app.

Pre-Money Valuation 161

Pre-Money Valuation Valuation Dilution Distribution 161

View from Seed

SEPTEMBER 14, 2021

Will Quist did a great job of explaining this market rhetoric in this thread. The three-question framework goes as such: Q: How much tech-related market cap will be created in the next 10-20 years? So, on one hand, the market see ms like a total frenzy these days. However, I am not sure that is the case with VC. of the Nasdaq.

Valuation 319

Valuation Pre-Money Valuation Distribution Early Stage 319

View from Seed

SEPTEMBER 14, 2021

Will Quist did a great job of explaining this market rhetoric in this thread. The three-question framework goes as such: Q: How much tech-related market cap will be created in the next 10-20 years? So, on one hand, the market see ms like a total frenzy these days. However, I am not sure that is the case with VC. of the Nasdaq.

Valuation 295

Valuation Pre-Money Valuation Distribution Early Stage 295

David Teten

SEPTEMBER 16, 2014

In 2013, 298,800 angels invested in 70,730 entrepreneurial ventures, according to the 2013 Angel Market Analysis by the Center for Venture Research at the University of New Hampshire. Source: Center for Venture Research – Angel Market Analysis Report. Sohl: “The Angel Investor Market in 2011: The Recovery Continues”.

Angel Investor 114

Angel Investor Technical Review Venture Capital Pre-Money Valuation 114

Gust

JULY 23, 2014

You’ll need to have invested significant cash (whatever that term means to you) in your own company, and you’ll need to have the core of your team in place (typically a techie and a marketer, at a minimum.)

Angel Investor 153

Angel Investor Elevator Pitch Pre-Money Valuation Technical Review 153

Startup Professionals Musings

SEPTEMBER 30, 2011

The founders now need a $1M Angel investment to do the marketing for a national NewCo rollout, build a team to manage the rollout, and maybe even pay themselves a salary. How much is NewCo worth to investors at this point (pre-money valuation)? Look at the size of the market, and the growth projections for your sector.

Pre-Money Valuation 246

Pre-Money Valuation Valuation NPV Intellectual Property 246

Both Sides of the Table

SEPTEMBER 29, 2009

But any entrepreneurs raising capital should keep in mind that this opening of the markets could possibly be temporary. They should heed the age old advice that raising slightly more money while you can is always better than trying to optimize future valuations. Why did the VC markets freeze so quickly?

Burn Rate 263

Burn Rate Valuation Pre-Money Valuation Private Equity 263

Both Sides of the Table

FEBRUARY 15, 2016

It’s a very personal topic and I’d like to offer you a framework to decide for yourself, based on the following factors: How Long is it Taking to Raise Capital at Your Stage in the Market? Go hard and hope that the market will validate your innovation even if the price may be higher than the market may want to bear.

Burn Rate 150

Burn Rate Cap Table Valuation Software Review 150

ReadWriteStart

OCTOBER 7, 2010

So at any point, if you are trying to raise money, and you are hearing from investors that you are too early and have too little validation, it may be a good thing. As a thumb rule, try to get enough validation so that you can get to at least a $2 million pre-money valuation before raising equity capital. Photo by lco.

Valuation 119

Valuation Silicon Valley Pre-Money Valuation Bootstrapping 119

Gust

NOVEMBER 18, 2012

The founders now need a $1M Angel investment to do the marketing for a national NewCo rollout, build a team to manage the rollout, and maybe even pay themselves a salary. How much is NewCo worth to investors at this point (pre-money valuation)? Look at the size of the market, and the growth projections for your sector.

Valuation 187

Valuation Pre-Money Valuation NPV Intellectual Property 187

Startup Professionals Musings

SEPTEMBER 6, 2010

The founders now need a $1M Angel investment to do the marketing for a national NewCo rollout, build a team to manage blogs and other resources, and maybe even pay themselves a salary. How much is NewCo worth to investors at this point (pre-money valuation)? 500K might be a low estimate.

Valuation 234

Valuation Pre-Money Valuation NPV Startup 234

Both Sides of the Table

FEBRUARY 17, 2011

For many businesses you should keep your costs low & your capital raises low until you discover whether you are really on to a big idea where there is market demand. When you see evidence that there is this so called “product / market fit&# then you may be ready for larger amounts of capital. 25% dilution).

Pre-Money Valuation 303

Pre-Money Valuation Dilution Valuation PR 303

Both Sides of the Table

JULY 27, 2014

The only point we didn’t seem totally aligned on was what we happening to the “middle of the VC market.” Four years ago people paid $66m median pre-money valuation and are now paying $155m. We are 5 years into a bull market and all economic markets run in cycles.

Valuation 309

Valuation Pre-Money Valuation Later Stage Non-Compete 309

SoCal CTO

FEBRUARY 2, 2011

Bill Payne is an expert on how early-stage investors should look at valuation. He just post: Establishing the Pre-money Valuation of Pre-revenue Startups. Especially interesting is the Valuation Worksheet towards the end. Size of target market $100M is okay. It's required reading. Not sure why.

Valuation 198

Valuation Revenue Pre-Money Valuation Early Stage 198

Lightspeed Venture Partners

OCTOBER 7, 2012

This isn’t a company yet, it’s an idea, and the founder could do a lot more on his own to validate product-market fit before raising capital. As Cuban pointed out, this is a “down round” Zomm is seeking $2M for 10% of the company, implying an $18M pre money valuation today.

Technical Review 110

Technical Review Technical Cofounder Valuation Pre-Money Valuation 110

View from Seed

SEPTEMBER 14, 2021

Will Quist did a great job of explaining this market rhetoric in this thread. The three-question framework goes as such: Q: How much tech-related market cap will be created in the next 10-20 years? So, on one hand, the market see ms like a total frenzy these days. However, I am not sure that is the case with VC. of the Nasdaq.

Valuation 156

Valuation Pre-Money Valuation Distribution Early Stage 156

Agile VC

MAY 26, 2011

The market size for online advertising, e-commerce, and web premium services are 1/10th to 1/3rd the size they are today. To give you a sense, for 2002 the entire US online ad market was $6B and had shrunk year over year (it was $25B+ for 2010). We’re a how-to site and community for small business on marketing. .

Term Sheet 178

Term Sheet Silicon Valley Technical Review Social Network 178

YoungUpstarts

SEPTEMBER 4, 2017

For investors who have come to the table with a history investing in publicly listed companies or the property market, it’s easy to think that backing startups is largely a “set and forget” strategy. Perhaps you know a Marketer, a Developer or Sales Manager that could fill a gap in one of the startups you back. What could be improved?

Pre-Money Valuation 187

Pre-Money Valuation Seed Stage IP Deal Flow 187

Lightspeed Venture Partners

NOVEMBER 19, 2012

It isn’t the formulation that is the barrier to entry, but rather the marketing positioning of an energy drink designed by, and made for Marines Special Forces. Interestingly, this new deal actually lowered the pre money valuation for the company. 75,000 for 10% implies a $675,000 pre money valuation.

Pre-Money Valuation 160

Pre-Money Valuation Alabama Valuation Churn Rate 160

YoungUpstarts

SEPTEMBER 15, 2018

The pre-money valuation of other startups is based on the following factors. Your Market Valuation May Differ from Your Worth. However, you may have more liquid assets because of which you think that your valuation should be more than what your investors have actually spelt out.

Pre-Money Valuation 124

Pre-Money Valuation Valuation Sweat Equity Startup 124

Hunter Walker

AUGUST 7, 2017

While you should expect these sorts of hires to take below market cash comp versus what Google is paying them, this tradeoff needs to be replaced with equity upside. What if we split the pain [ie increase pre-money valuation slightly on our end and founders take slightly more dilution off their end]?”

Equity 94

Equity Pre-Money Valuation Option Pool Founder 94

Startup Professionals Musings

MARCH 18, 2016

As an entrepreneur looking for professional investors, one of the quickest ways to lose credibility and get rejected is to start with a ridiculously high pre-money valuation. It’s like trying to sell a home still being built at next year’s dream market price.

Intellectual Property 120

Intellectual Property Valuation Pre-Money Valuation Startup 120

Both Sides of the Table

FEBRUARY 4, 2016

” There are a lot of data points that one can observer to get a sense of the venture capital markets – both LP fundings into venture and VC financings of startups. They point to some widely known facts: financings & valuations are up massively over the past 7 years and non-VC money has entered the system.

LP 150

LP Valuation Burn Rate Pre-Money Valuation 150

The Startup Lawyer

FEBRUARY 4, 2011

The following are some issues to consider and actions to take before accepting an incubator’s offer: (1) Calculate Valuation and Determine Value. Pre-money valuations startups receive from incubators are typically low…really low. 6) Search For the Incubator’s PR and Marketing Efforts.

Incubator 105

Incubator Pre-Money Valuation Option Pool Advisory Board 105