Both Sides of the Table

NOVEMBER 14, 2017

Raise too soon and likely take on more dilution, wait and get valuation up (as our metrics continue to rise) but then run to a point where you have a lower cash balance and place more risks on the business. These are the hard problems we’ll have to address in the year ahead along with the perennial, “ When should we raise more money?

Operations 286

Operations New York City Technical Review Startup 286

Both Sides of the Table

AUGUST 25, 2015

When they’re bullish venture valuations go up, LPs put more money into VCs, more angels want to get involved, new entrants (hedge funds, mutual funds) feel their missing out and the overall venture market goes us. private valuations go down (slowly because they only adjust at funding intervals or M&A); 0r. So now what?

Balance Sheet 150

Balance Sheet Valuation Burn Rate Stock 150

Both Sides of the Table

FEBRUARY 27, 2019

The law firm has done its job of preparing the stock option requests, board meeting minutes, 409a valuations. Often board members themselves don’t do the work to say “what metrics would we like to see.” If you have some key metrics or financial figures that go with the pre-read even better. The meeting starts.

Stock Options 226

Stock Options Metrics Stock Valuation 226

Both Sides of the Table

SEPTEMBER 28, 2013

Good press and industry mojo wasn’t enough to overcome the financial metrics of the business and the offers came in at more like $10 million. Dilution / valuation. I hate when companies publish too much information about the total stock option allocations, the company valuations, the dilution faced in every round, etc.

Startup 417

Startup Dilution San Diego Stock Options 417

Both Sides of the Table

JULY 16, 2013

It goes like this, “If your next round investor can see how fast you’re scaling then you can raise money based on your user traction and your valuation can hit the sky. The minute you try to monetize now they have metrics with which to beat you up and say you’re business has limitations.” Again, all true.

Burn Rate 412

Burn Rate Dilution Revenue Valuation 412

Both Sides of the Table

AUGUST 20, 2015

” Companies that are raising greatly in excess of their economic worth in today’s financial metrics had better absolutely grow into their valuations over time or hope they’re acquired before the music stops and the band goes home. We’ll see. What do I know about venture? I’m not totally sure.

Churn Rate 150

Churn Rate Silicon Valley Brazil Valuation 150

Both Sides of the Table

JUNE 11, 2015

In fact, last time I grabbed a beer with Matt he mentioned that he had active investments now worth over a billion in valuation. He had always read all of the materials, gone through the metrics, done pre-calls with the CEO and was always respectful in how he walked through the challenges of the company and our remedies.

Silicon Valley 150

Silicon Valley Los Angeles San Francisco Architecture 150

Both Sides of the Table

MARCH 6, 2015

Having a great early investor provides downstream capital with a “signal” that you are a company worthy of being paid attention to even if you haven’t scaled your metrics. And people like Jeff (and his peers) smooth the introduction to and transition process to A-round investors.

Seed Stage 150

Seed Stage Silicon Valley Syndicate Syndication 150

Both Sides of the Table

JULY 17, 2018

" Revenue doesn't pay your bills, GM does  —  @msuster 2/ Founders obsess with revenue as a vanity metric. But if you want to add some in the comments section on Medium and I’ll make sure to read them. Some even grow "bad" revenue just to show growth.

Founder 242

Founder Dilution Software Review Later Stage 242

Both Sides of the Table

MAY 23, 2012

Yes, it’s true that FOMO (fear of missing out) is driving some irrational behavior and valuations amongst uber competitive deals and well-financed VCs. What the explosion in startups really means for our industry is a much bigger pipeline of potential deals if we VC’s can be patient. They compete on features, price and execution.

Venture Capital 347

Venture Capital Technical Review LP Mobile 347

Both Sides of the Table

DECEMBER 9, 2013

Deal with company admin: 409a valuations, approve stock options, vote on key measures (15%). should we raise capital now while valuations are strong or wait until next year when we have more traction? Schedule 1:1 calls 1 week before the meeting to walk each board member through the key issues / performance metrics in the business.

Advisory Board 337

Advisory Board Valuation Stock Options Seed Money 337

Both Sides of the Table

MARCH 6, 2011

EcoMom’s metrics improved throughout this process and that’s when I decided to invest. I ask Naval about the concern of rising valuations and if he sees this as a potential issue with AngelList. Naval says valuations are definitely going up, but isn’t completely sure why. This is also a cause for increased valuations.

Valuation 292

Valuation Deal Flow Lead Investor Cofounder 292

Both Sides of the Table

SEPTEMBER 27, 2015

Not the successful companies themselves but the entire b t culture of swash-buckling startups who define themselves by hitting some magical $1 billion valuation number and the financiers who back them irrespective of metrics that justify it. 10 years from now people will be embarrassed to say unicorn.

Detroit 150

Detroit Government Syndicate Syndication 150