David Teten

SEPTEMBER 16, 2014

Villalobos & Payne: “Startup Pre-Money Valuation: The Keystone to Return on Investment” 117. Wiltbank & Boeker: “Returns to Angel Investors in Groups” 3,097. approx 1999-07. 1961- 1996. Mason & Harrison: “Is it worth it?

Angel Investor 114

Angel Investor Technical Review Venture Capital Pre-Money Valuation 114

Both Sides of the Table

JUNE 22, 2011

In addition to FOMO it is partly driven by massive increase in valuations for earlier-stage companies who raised money at bit seed prices but who still have product risk. million pre-money valuation is now raising $1 million at a $12 million valuation the next investor has nowhere to go but up (or sit out the investment).

Saudi Arabia 309

Saudi Arabia Valuation IPO Technical Review 309

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 163

Pre-Money Valuation Post-Money Valuation Valuation Dilution 163

Both Sides of the Table

SEPTEMBER 29, 2009

The pricing problem – So an investor put $5 million at a $10 million pre-money valuation in a company with a great beta product but no real customers. The company was therefore priced at $15 million post-money and the VC (s) own 1/3 rd. It is no wonder why they had less time for new deals. The deal was done in late 2007.

Burn Rate 263

Burn Rate Valuation Pre-Money Valuation Private Equity 263

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. Operational Expertise.

Pre-Money Valuation 187

Pre-Money Valuation Seed Stage IP Deal Flow 187

Both Sides of the Table

FEBRUARY 17, 2011

Every conversation about fund raising should start with what your current operational needs are and the stage of your business. You’re offered a $9 million pre-money to raise $3 million (e.g. 5 million raised at a $9 million pre-money valuation or 35.7% 25% dilution). Just don’t go crazy.

Pre-Money Valuation 303

Pre-Money Valuation Dilution Valuation PR 303

Hippoland

AUGUST 31, 2018

Another consideration here is that in the minds of pre-seed investors (who are very often small funds and will be allocating most of their capital in the first round or two), valuation matters a lot more to them than a larger fund who might invest in you at this stage as an option for later.

Pre-Money Valuation 90

Pre-Money Valuation Valuation Silicon Valley Early Stage 90

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. I'm an investor.

Silicon Valley 159

Silicon Valley Lean Venture Capital Pre-Money Valuation 159

Hippoland

AUGUST 31, 2018

Another consideration here is that in the minds of pre-seed investors (who are very often small funds and will be allocating most of their capital in the first round or two), valuation matters a lot more to them than a larger fund who might invest in you at this stage as an option for later.

Pre-Money Valuation 48

Pre-Money Valuation Valuation Silicon Valley Early Stage 48

ithacaVC

APRIL 10, 2012

Rather, they want their investment dollars used for growing and operating the portfolio company going forward. ” The impact of such a stock option grant to the VC is zero because it would be done pre-money and simply factor into the pre-money valuation and share price calculation.

Cap Table 49

Cap Table Pre-Money Valuation Stock Options Due Diligence 49

David Teten

NOVEMBER 15, 2013

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. By spending more money, investors can justify managing more money, which in turn increases their fees.

Management 114

Management Pre-Money Valuation Venture Capital New Hampshire 114

Berkonomics

SEPTEMBER 27, 2018

Within three months, we easily obtained $3 million of investment at a pre-money valuation of $30 million. Three months later, another investor company in the business offered to invest $3 million at a valuation of $60 million. By this time there were not one but four million registered users.

Pre-Money Valuation 48

Pre-Money Valuation Sales Liquidity Event Valuation 48

Business Plan Blog

DECEMBER 26, 2013

Pre-money valuation. Both parties will need legal representation, but the angel group should now operate as one with a single legal adviser. The term sheet is a legally binding document and should include the following elements: - Offer terms, such as: Company, founder and investor details. Amount to be invested.

Angel Investor 51

Angel Investor Due Diligence Pre-Money Valuation Angel Groups 51

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

Seeing Both Sides

JULY 15, 2009

Year in, year out, Thus, VCs and entrepreneurs are not operating on an equal playing field when it comes to negotiating financings and interpreting the impact of the terms involved. And if they don't focus on the pre-money, they focus on their ownership position after the financing, irrespecive of the amount of capital that was raised.

Pre-Money Valuation 49

Pre-Money Valuation Option Pool Stock Options Post-Money Valuation 49

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 are particularly focused on low CapEx high operating leverage businesses. Typical valuation at first funding is below $5m pre-money.

Venture Capital 60

Venture Capital Pre-Money Valuation Prospectus Early Stage 60

www.paulgraham.com

APRIL 28, 2010

To be a startupyou need to be the band that sells a million copies of a song, notthe band that makes money by playing at individual weddings and barmitzvahs. Most startups operate close to themargin of failure, and the distraction of having to deal with clientscould be enough to put you over the edge. So theyre going to raise $200,000.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

www.paulgraham.com

OCTOBER 23, 2010

But this is just the kindthat tends to be open source: operating systems, programminglanguages, editors, and so on. So if youre developing technologyfor money, youre probably not going to be developing it for peoplelike you. Ididnt realize that when we were raising money. Everyone knows these, because theyre big consumerbrands.

Startup 105

Startup Cofounder Software Stock 105