Gust

OCTOBER 18, 2011

This is the first of a six part series on different methods used by angel investors to arrive at pre-money startup valuations. The Venture Capital Method. The Venture Capital Method (VC Method) was first described by Professor Bill Sahlman at Harvard Business School in 1987 in a case study and has been revised since.

Valuation 174

Valuation Pre-Money Valuation Southern California Post-Money Valuation 174

Both Sides of the Table

SEPTEMBER 18, 2014

On the phone … Me: So, you raised venture capital? There were no metrics. Him: On metrics. Me: There is no rational explanation for valuations of A round companies by ANY objective financial measure. If we priced it based on any metrics your company would likely be worth less than 7 figures at your A round.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

View from Seed

MARCH 24, 2021

At NextView Ventures we have written many pieces about venture capital — how to raise it, build your business, engage with investors, iterate your product, navigate expanding industries, etc. What Are Your Valuation Expectations? I’ve Been in Venture Capital for Two Months. VCs sure do love writing.

Seed Stage 177

Seed Stage Hiring IPO Analytics 177

Both Sides of the Table

JUNE 5, 2011

2: As expected at least one person accused me of writing this post because I want to see lower valuations. As the risks below get eliminated the higher the valuation investors are prepared to pay. So rounds tend to be “range bound&# where the top end of the valuation spectrum often being done in boom markets (i.e.

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336

Gust

SEPTEMBER 17, 2014

Me: So, you raised venture capital? There were no metrics. Him: On metrics. Me: There is no rational explanation for valuations of A round companies by ANY objective financial measure. If we priced it based on any metrics your company would likely be worth less than 7 figures at your A round. On the phone ….

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

Board Effect

MAY 10, 2019

Cap tables list a company’s authorized and outstanding shares, the parties to which those shares have been assigned, and the various metrics relevant to managing them. Such metrics can include an investor’s liquidation preference, option exercise windows and expiry dates, and shareholders’ fully diluted ownership percentages.

Cap Table 40

Cap Table Liquidation Preference Dilution Liquidity Event 40