Lightspeed Venture Partners

SEPTEMBER 21, 2013

to fund the company at a $6M post money valuation from a number of investors including Selena Gomez. Despite having over 500k downloads and making $450k in revenue over the last 21 months, he had only $185k left in the bank, which meant that he would be out of business in 90 days if he didn’t raise more money.

Pre-Money Valuation 162

Pre-Money Valuation Valuation Dilution Distribution 162

Growthink Blog

JANUARY 24, 2011

The liquidation preference means what is sounds - namely that preferred stock holders with this right get all of their money back (i.e. liquidate their shares) before any distribution of proceeds in the event of a sale of a company. This is an extremely valuable preference that can best be shown by example.

Preferred Stock 93

Preferred Stock Stock Common Stock Liquidation Preference 93

www.mint.com

MARCH 9, 2010

What is the post-money valuation of your last round? Post-money valuation” is the value of the company after the last round of money was put in (again, lines of credit and promises don’t count). I worry about everything: money, sales, engineering, support, and recruiting.

Software Review 68

Software Review Startup Post-Money Valuation Technical Review 68

Lightspeed Venture Partners

OCTOBER 1, 2012

The company did $1M in sales last year, 90% from wholesale, and had a 10% profit margin. They wanted to get to $10M in sales and then get bought by a big food company. pre money valuation). Cuban has interest in a gluten free diet, and claimed that he liked the company, but his only concern was valuation.

Pre-Money Valuation 153

Pre-Money Valuation Valuation Participating Preferred Preferred Stock 153

VC Cafe

NOVEMBER 1, 2019

A quick look at what’s available shows they are targeting enterprise users (design, product, sales, human resources, engineering…) but the Personal and Education template libraries are also fairly developed. Pitchbook shows that Notion has a post money valuation of $800M, making Notion a fast unicorn from the time of funding.

Wiki 68

Wiki San Francisco Post-Money Valuation Cloud 68

This is going to be BIG.

MARCH 23, 2015

They''re at a similar stage to my investments now out of Brooklyn Bridge backing Tinybop pre-launch, Canary before their Indiegogo pre-sale, and VIXXENN with just an alpha site and a few stylists. If their entry valuation is that much lower because more dollars are in the Series A, they will still be able to make their return.

Post-Money Valuation 60

Post-Money Valuation Valuation Pre-Money Valuation Seed Money 60

Feld Thoughts

FEBRUARY 9, 2016

I suffered through the next financing after implementing a complex structure, or a sale of the company, or a liquidation. This is a little tricky in early rounds and with modest up-round financings, as you’ll often have a liquidation preference that is high relative to your overall valuation.

Cap Table 70

Cap Table Down Round Liquidation Preference Founder 70

Lightspeed Venture Partners

NOVEMBER 12, 2012

Season 4 week 9 of Sharktank was another fun episode, showing the importance of failing fast, being prepared for your pitch and how selecting an investor is about more than just optimizing valuation. He was unclear about his business strategy, whether he wanted to bundle his products with hardware sales or offer them as an upsell.

Valuation 99

Valuation Post-Money Valuation Viral Algorithm 99

This is going to be BIG.

MARCH 28, 2021

Consider the first money you ever take from VCs. You go back and forth on a price and you eventually settle on a post-money valuation cap of $6.5mm, meaning you have sold about 23% of your company. Well, what if I actually started looking at your net worth on paper given those valuations? million from investors.

Founder 133

Founder Post-Money Valuation Dilution Valuation 133

Seeing Both Sides

JULY 15, 2009

Entrepreneurs often mistakenly focus solely on the pre-money valuation while VCs look at multiple knobs in the negotiation to drive to a set of terms that, in total, they find acceptable. The first, and most focused on, is something called the pre-money valuation. What is the promote? Life isn’t fair.”).

Pre-Money Valuation 49

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

Seeing Both Sides

JANUARY 11, 2011

If different investors have invested at very different prices, or if the entrepreneur has not made money before and this is their first shot, there can be greater tension inserted into a naturally tense situation. But the Series C investor who just invested at an $80 million post-money valuation would be bitterly disappointed.

Post-Money Valuation 40

Post-Money Valuation Dilution Cofounder Valuation 40

The Next Web

DECEMBER 30, 2012

Strategy Mapping Selling : Business-to-business sales and marketing – advanced selling and marketing strategies for major and key account sales. Raising money for a startup from an angel investor : Learn pre-money and post-money valuations are.

Artificial Inteligence 156

Artificial Inteligence Founder Private Equity Ruby 156

Altgate

DECEMBER 18, 2008

Further assume that that money lasts you 2 years until you sell the company for $50MM to Microogle which would certainly be a “happy&# ending all things considered. In that scenario your last round investors will get $24MM of that sale off the top (3x their $8MM investment).

Liquidation Preference 31

Liquidation Preference Venture Capital Post-Money Valuation Participating Preferred 31

betashop.com

OCTOBER 8, 2012

million registered users, 7500 supplier partners, 600 team members, and a run-rate of more than $150M in sales in just 15 months. At Fab, mobile is already 33% of our visits and sales and we just launched our mobile apps nearly a year ago. Never, ever, choose your investors based on valuation. 500M valuation = $5B target.

Technical Review 108

Technical Review Technology Software Review Valuation 108

betashop.com

OCTOBER 8, 2012

Don’t choose your investors based on valuation. Raise as little money as possible when you first start. That means if you’re taking money with a $5M post-money valuation, the expectation is that you are building for a minimum $50M exit. $10M 10M post-money valuation = $100M target.

Post-Money Valuation 92

Post-Money Valuation Valuation Dilution Advisory Board 92

www.paulgraham.com

APRIL 28, 2010

You give a startup money and they give you stock. Youllprobably get either preferred stock, which means stock with extrarights like getting your money back first in a sale, or convertibledebt, which means (on paper) youre lending the company money, andthe debt converts to stock at the next sufficiently big fundinground. [

Angel Investor 63

Angel Investor Syndicate Syndication Dilution 63

Lightspeed Venture Partners

SEPTEMBER 23, 2012

post money valuation. Mark Cuban offered $300k for 33% of the company, implying a $900k post money valuation. implying a $600k post money valuation. The company ended up negotiating with Cuban and settled on $300k for 30% of the company, or a $1M post money valuation.

Pre-Money Valuation 158

Pre-Money Valuation Post-Money Valuation Valuation Dilution 158