Lightspeed Venture Partners

SEPTEMBER 23, 2012

The right number to focus on is pre money valuation as that is how an investor is valuing the company before the investment. Post money valuation = Pre money valuation + Investment. post money valuation and a $1.35M pre money valuation.

Pre-Money Valuation 164

Pre-Money Valuation Post-Money Valuation Valuation Dilution 164

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.

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). The rest, as they say, is history. It was a $4.7M Filed under Uncategorized.

Term Sheet 178

Term Sheet Silicon Valley Technical Review Social Network 178

Gust

SEPTEMBER 27, 2014

In order to be competitive, a company needs to have just about everything in place, from its product to its team to market traction, before it is ready to seek funding. As such, the competition from an entrepreneur’s standpoint is very, very tough. Given this imbalance, the fact is that most VCs are reactive rather than proactive.

Angel Groups 159

Angel Groups Elevator Pitch Software Review Deal Flow 159

Lightspeed Venture Partners

OCTOBER 1, 2012

pre money valuation). Cuban has interest in a gluten free diet, and claimed that he liked the company, but his only concern was valuation. The company came back and offered him 20% of the company for the $200k (an $800k pre money valuation). Barbara passed on market size. All the sharks passed.

Pre-Money Valuation 158

Pre-Money Valuation Valuation Participating Preferred Preferred Stock 158

Gust

NOVEMBER 4, 2011

In brief, a cap acts to place a limit on the conversion price of a convertible note such that investors are guaranteed a minimum number of shares for their bridge loans if the startup does a priced equity round at a high pre-money valuation – “high” meaning above the cap, which is often a heavily negotiated term. (The

Valuation 98

Valuation Pre-Money Valuation Merger Vesting 98

venturehacks.com

OCTOBER 21, 2010

If you don’t keep your eyes on the option pool while you’re negotiating valuation, your investors will have you playing (and losing) a game that we like to call: Option Pool Shuffle You have successfully negotiated a $2M investment on a $8M pre-money valuation by pitting the famous Blue Shirt Capital against Herd Mentality Management.

Option Pool 68

Option Pool Pre-Money Valuation Dilution Warrant 68

This is going to be BIG.

SEPTEMBER 7, 2012

The one thing that does effect them all is the cyclicality of funding and exit markets, but if you go back over the last 20 years, there's really only been a very short timeframe where you literally could not get a company funded. Sure, when those periods hit, they hit bad, but most of the time, they hit the poorly prepared companies worse.

Later Stage 99

Later Stage Down Round Pre-Money Valuation Early Stage 99

Pascal's View

AUGUST 21, 2011

Does the primary and secondary capital raising prowess of companies such as Facebook, Linked In, Pandora, Twitter, Groupon, Zynga, and others, mean that we have finally crossed the threshold and reached a sustainable new valuation paradigm (it’s different this time, really), or is this another accident now happening in real time?

Valuation 50

Valuation Social Media Media IPO 50

www.paulgraham.com

OCTOBER 23, 2010

The market price is less than the inconvenience of signing an NDA. Microsofts originalplan was to make money selling programming languages, of all things.Their current business model didnt occur to them until IBM droppedit in their lap five years later. The best odds are in niche markets.

Startup 105

Startup Cofounder Software Stock 105

www.paulgraham.com

APRIL 28, 2010

2 ] When you negotiate terms with a startup, there are two numbers youcare about: how much money youre putting in, and the valuation ofthe company. The valuation determines how much stock you get. Ifyou put $50,000 into a company at a pre-money valuation of $1million, then the post-money valuation is $1.05

Angel Investor 63

Angel Investor Syndicate Syndication Dilution 63