YoungUpstarts

SEPTEMBER 4, 2017

For startup founders and CEO’s it’s also just as common to see them place too much focus on the amount of money raised, and the pre-money valuation, rather than the value that each investor can bring to the table. Here’s some common ways you can provide value to startups you invest in: Leverage Your Network.

Pre-Money Valuation 187

Pre-Money Valuation Seed Stage IP Deal Flow 187

Gust

OCTOBER 12, 2011

To provide some reference points, I surveyed thirteen angels groups in North American to determine their recent experience in negotiating the pre-money valuation of pre-revenue companies. See the 2010 data reported here: Current Pre-money Valuations of Pre-revenue Companies. Current Average.

Angel Groups 125

Angel Groups Valuation Pre-Money Valuation St. Louis 125

Agile VC

MAY 26, 2011

Online social networking is a concept still being evangelized even in Silicon Valley… Friendster is in private beta (wasn’t until Oct 2003 they received Google acquisition offer which they turned down for Kleiner/Benchmark round). First and foremost, we believed there would be a “professional” social network.

Term Sheet 178

Term Sheet Silicon Valley Technical Review Social Network 178

Gust

SEPTEMBER 27, 2014

There’s no use banging your head against a VC’s door with a social network venture if they only invest in biotech companies. As noted above, most investors find most of their best investments through recommendations from people in their network, and that network now includes…you!

Angel Groups 159

Angel Groups Elevator Pitch Software Review Deal Flow 159

SiliconHills

OCTOBER 22, 2013

The deals, with a median investment round of $590,000, had pre-money valuations of $2.5 Austin Central Texas Angel Network CTAN Halo Report Silicon Valley Bank Texas' And 74 percent of the deals were syndicated.

Angel Groups 83

Angel Groups Pre-Money Valuation Silicon Valley Texas 83

Tim Keane

JANUARY 12, 2010

An average of these ranges results in a pre-money valuation of about $4MM.   If similarly situated companies are seeing $3.5MM pre-money valuations, this might become the target valuation. An average of these ranges results in a pre-money valuation of about $4MM. Google Ads.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Gust

OCTOBER 20, 2011

A local network of angels is critical to achieving a diversified portfolio. Working within a network of angel investors also expands the pool of expert resources and helps divide the work of screening companies and investment due diligence. As can be seen the average (mean) pre-money valuation for recent pre-revenue deals is $2.1

Valuation 146

Valuation Pre-Money Valuation Intellectual Property Technical Review 146

Professor VC

JANUARY 17, 2008

Again, I see nothing wrong with this, although entrepreneurs often prefer convertible debt as it defers the valuation discussion and leaves the Series A price for the venture firm to set. He also said they typically only invest at a $1 million pre-money valuation or less. A Lot of Horn Tooting over a Kazoo sized deal.

Pre-Money Valuation 28

Pre-Money Valuation Angel Investor Angel Groups Valuation 28

Feld Thoughts

JULY 29, 2011

Jane and Dick worked together at Denver Health, the nation’s “most wired” hospital according to Hospitals & Health Networks Magazine. Through a series of conversations, Jane and Dick have come up with the idea to develop a social network tailored to the medical community.

Equity 137

Equity Finance Pre-Money Valuation Denver 137

The Startup Lawyer

AUGUST 12, 2010

Occassionally, a startup will get a term sheet from an angel with a pre-money valuation less than the investment amount (i.e., But you never want to end up with an angel controlling your tech startup during the day, then calling you at night because he can’t get his iPad to work on his wifi network.

Pre-Money Valuation 76

Pre-Money Valuation Angel Investor Term Sheet Valuation 76

David Teten

FEBRUARY 9, 2015

If you are testing the market to see what terms you can get, just say, “We are targeting to raise $X at pre-money valuation of $Y.” We want to know what qualifies you to execute your idea successfully and better than the five other companies in your space: work history, network, and skills are all key.

Venture Capital 60

Venture Capital Pre-Money Valuation Prospectus Early Stage 60

K9 Ventures

MAY 14, 2011

They provide additional value add in the form of coaching and mentorship, and most of all access to a network of other entrepreneurs and smart people – that to me is really the real value of being involved with an incubator / accelerator. The incubators also help get their teams get visibility amongst potential investors.

Preferred Stock 125

Preferred Stock Seed Stage Incubator Early Stage 125

thestartuplawyer.com

FEBRUARY 24, 2010

Contact The Startup Lawyer: Home Page About Contact FAQs Glossary Ryan Roberts Law: Home Page Social Networks: Facebook Twitter LinkedIn Flickr Delicious Digg Last.FM Contact The Startup Lawyer: Home Page About Contact FAQs Glossary Ryan Roberts Law: Home Page Social Networks: Facebook Twitter LinkedIn Flickr Delicious Digg Last.FM

Cofounder 40

Cofounder Founder Preferred Stock Startup 40

David Teten

NOVEMBER 15, 2013

I have frequently heard the expression from other investors, “We can put a lot of money to work here.” This is the psychology that drives VCs to load up a company with more capital, rationalizing that $5m at a $20m pre-money valuation is little different than $10m at a $40m pre-money valuation.

Management 114

Management Pre-Money Valuation Venture Capital New Hampshire 114

Altgate

MAY 24, 2012

To estimate how much the founders and other insiders owned after each of the startup’s first three rounds of financing, we used the two major factors that affect dilution: the capital raised by the startup and the pre-money valuation it received. million, with a valuation of $10 million. As shown in Figure 9.5

Pre-Money Valuation 43

Pre-Money Valuation Cofounder Dilution Valuation 43

www.currentlyobsessed.com

MAY 28, 2010

Instead of “We are worth about $5m because we have done XYZ and we need to raise $1m, so let’s sell 20%&# it’s better to think about valuation as an output variable, like “Let’s raise $2mm and sell 33%, our (pre-money) valuation is therefore $4mm.&# Future value is key.

Valuation 42

Valuation Channel Pre-Money Valuation Term Sheet 42

Startup Lessons Learned

JUNE 19, 2019

So the venture process was all about trying to figure out whether or not people could deliver what they said they could, and you typically invested as early as possible at a $5 million pre-money valuation, hoping the company would be worth $500 million, in which case you'd make 20 to 30 times your money.

Silicon Valley 159

Silicon Valley Lean Venture Capital Pre-Money Valuation 159