Feld Thoughts

JULY 9, 2019

This was before the IPO Summer of 2019 when all conventional valuation metrics have entered the land of “suspension of disbelief” which is short-term good and long-term well-we-will-see-…-eventually. We ended up talking about using Gross Profit, instead of Revenue, to do valuation analysis.

Revenue 179

Revenue Valuation .Net IPO 179

Feld Thoughts

OCTOBER 30, 2014

He’d gotten a random note asking about his valuation when we invested relative to another financing that was just announced. The other company, which was much smaller at the point of investment, got an 11x ARR valuation. My response to the specific situation was: Valuations have increased on a relative basis.

Valuation 143

Valuation Stock Angel Investor IPO 143

Feld Thoughts

NOVEMBER 18, 2013

Convertible debt financings have become an increasingly attractive approach for seed rounds because it delays the valuation discussion, costs less from a legal standpoint, and is an easier financial instrument to “keep raising more small amounts of money” on. No updates, screen comps, or metrics have been publicly shared yet.

Burn Rate 152

Burn Rate Equity Software Review Early Stage 152

Feld Thoughts

APRIL 29, 2015

Now that everyone is overly focused on unicorns, the headline number on the valuation (e.g. Company X raised Y at a valuation of Z from A, B, and C) has crept into the story on big rounds. No underlying metrics that drive the financing. in Funding: Here is the Valuation, Term Sheet and Why We’re Doing It.

Atlanta 70

Atlanta Valuation Term Sheet Finance 70

Feld Thoughts

SEPTEMBER 9, 2015

Some will demonstrate strategically justifiable metrics and have fantastic ‘up round’ exits; others may see liquidation preferences kick in which will negatively impact founders and employees; others may fulfill the adage “IPO is the new down round” , which has been the case for more than half of the public companies on our list. “We

Liquidation Preference 70

Liquidation Preference Burn Rate Balance Sheet .Net 70

Feld Thoughts

APRIL 21, 2016

Anything that hints of a down round brings questions about the success metrics that have already been “booked.” They are likely sitting on amazing paper-based gains that have already been recorded as a success by their own investors — the LPs. Furthermore, an abundance of such write-downs could impede their ability to raise their next fund.

Marketing 70

Marketing Down Round Startup IRR 70

Feld Thoughts

JANUARY 20, 2015

You think you’ve got it and it’ll keep scaling, but you hire the wrong VP Sales, you focus on the wrong metrics, or you end up struggling to renew your customers when the first annual renewal cycle hits. higher multiple, but not linear) your valuation will be. This is where myth #3 bops you on the head.

Product 70

Product Marketing Valuation Search 70