David Teten

SEPTEMBER 16, 2014

1994 – present. Villalobos & Payne: “Startup Pre-Money Valuation: The Keystone to Return on Investment” 117. Average Angel Returns Over Time. Time Period. Total Investments. Exited Investments. Band of Angels Website FAQ. Sohl: “The Angel Investor Market in 2011: The Recovery Continues”. approx 1999-07.

Angel Investor 114

Angel Investor Technical Review Venture Capital Pre-Money Valuation 114

Both Sides of the Table

JULY 27, 2014

I recently attended and presented at Dave McClure’s PreMoney conference in San Francisco. We both are concerned about non-traditional capital entering the late stages and the impact that may have in the next downturn in the economy to the startups who merely trying to optimize for short-term valuation maximization. And we ended.

Valuation 309

Valuation Pre-Money Valuation Later Stage Non-Compete 309

Startup Professionals Musings

SEPTEMBER 14, 2010

Entrepreneurs sometimes assume an initial agreement with an angel is a commitment, so they start spending before any money is received. It’s true that angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. Seat on the board.

Term Sheet 227

Term Sheet Pre-Money Valuation Due Diligence Post-Money Valuation 227

ReadWriteStart

OCTOBER 7, 2010

So at any point, if you are trying to raise money, and you are hearing from investors that you are too early and have too little validation, it may be a good thing. As a thumb rule, try to get enough validation so that you can get to at least a $2 million pre-money valuation before raising equity capital.

Valuation 119

Valuation Silicon Valley Pre-Money Valuation Bootstrapping 119

Lightspeed Venture Partners

OCTOBER 7, 2012

As Cuban pointed out, this is a “down round” Zomm is seeking $2M for 10% of the company, implying an $18M pre money valuation today. But the company had previously raised $5M for 17% of the company, implying a post money valuation after that investment of $29.4M. The entrepreneur was clearly desperate.

Technical Review 110

Technical Review Technical Cofounder Valuation Pre-Money Valuation 110

The Equity Kicker

APRIL 10, 2015

From the perspective of existing investors the right way to calculate the valuation multiple is to compare the pre-money valuation of the new round with the post-money valuation of the last round, which is the same as the increase in share price. (As

Valuation 60

Valuation Pre-Money Valuation Post-Money Valuation Option Pool 60

Gust

OCTOBER 17, 2011

Entrepreneurs sometimes assume an initial agreement with an angel is a commitment, so they start spending before any money is received. It’s true that angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. Seat on the board.

Term Sheet 158

Term Sheet Pre-Money Valuation Due Diligence Post-Money Valuation 158

Tim Keane

JANUARY 12, 2010

  Investors sometimes “present” the terms they’d like and expect the entrepreneurs to react. Now that I’m more often on the other side of the term-sheet, I’ve tried to present term-sheets to entrepreneurs accompanied by a philosophical explanation of what I’m proposing, and why. stake in the company. The Consideration of Risk.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Gust

SEPTEMBER 27, 2014

I am continually surprised at founders who spend ten minutes throwing up a barebones profile and are dismayed that money doesn’t start flowing in. At the very least, answer ALL the profile questions, include your company’s logo, create a two-minute elevator pitch video and upload your presentation deck.

Angel Groups 159

Angel Groups Elevator Pitch Software Review Deal Flow 159

Lightspeed Venture Partners

OCTOBER 22, 2012

The first company to present was an LA based food truck selling fresh Maine lobster rolls, founded by two cousins, Saban Lomac and Jim Tselikis. This implies a pre money valuation of $1.045M. See my breakdown of week 2 for more on how to calculate pre money valuation.). Cousins Maine Lobster.

Pre-Money Valuation 101

Pre-Money Valuation Valuation Dilution Differentiation 101

Both Sides of the Table

FEBRUARY 4, 2016

The full presentation & data can be downloaded on SlideShare. Limited Partners (LPs) who invest in VC funds have continued to pour money into venture – with the market returning to pre-recession levels. The result of all of this new money? State of the Market. Upfront vc analysis 2016 from Mark Suster.

LP 150

LP Valuation Burn Rate Pre-Money Valuation 150

ithacaVC

DECEMBER 13, 2013

When raising money from investors (angels or VC), it is critical to have a presentable and clean cap table. There are many reasons for this, but fundamentally, it is impossible to calculate a share price for the investment round unless you have complete agreement on how many shares are outstanding pre-money.

Cap Table 67

Cap Table Pre-Money Valuation Option Pool Liquidation Preference 67

The Startup Magazine

SEPTEMBER 12, 2019

Before opening yourselves up to venture capital, you should have enough customers to demonstrate real value and present specific numbers to support your pre-money valuation. . At the right time and under the right circumstances, venture capital can be a game-changer. It certainly was for us.

Early Stage 85

Early Stage Venture Capital Bootstrapping Pre-Money Valuation 85

Professor VC

JANUARY 17, 2008

One group charges entrepreneurs "an administrative fee" to present to the group. 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. Back to the panel.

Pre-Money Valuation 28

Pre-Money Valuation Angel Investor Angel Groups Valuation 28

Berkonomics

SEPTEMBER 27, 2018

After presenting a “state of the company” report at a national meeting of resellers for a company where I sat on the board, I was approached by one of the audience members, complimenting my presentation and stating, “I have a problem. The background for my story. The year was 1998. And then, unbelievable value growth.

Pre-Money Valuation 48

Pre-Money Valuation Sales Liquidity Event Valuation 48

David Teten

FEBRUARY 9, 2015

First, I suggest you send a 7-10 page presentation deck (or link to a deck) with a one-page introductory email. 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.” ” Investors value getting a sense of your expectations.

Venture Capital 60

Venture Capital Pre-Money Valuation Prospectus Early Stage 60

Up and Running

SEPTEMBER 20, 2021

Furthermore, there are various forms of equity, such as preferred stock, common stock, and convertible notes, which influence the present and potential future investors. For instance, the cap table will help you with various possibilities while running business activities like available options and pre-money valuations faster.

Cap Table 112

Cap Table Pre-Money Valuation Stock Options Option Pool 112

Berkonomics

SEPTEMBER 17, 2011

After presenting a “state of the company” report at a national meeting of resellers for a company where I sat on the board, I was approached by one of the audience members, complimenting my presentation and stating, “I have a problem. First here is a bit of the background. The year was 1998.

Liquidity Event 59

Liquidity Event Pre-Money Valuation Sales Valuation 59

VC Cafe

SEPTEMBER 26, 2022

For more about forecasting growth in these uncertain times, check out Sequoia’s “ Adapting to Endure ” presentations published in May 2022. ValuatIon should be a function of value, not ego. Kawasaki’s Law of Pre-Money Valuation: for every full-time engineer, add $500,000; for every full-time M.B.A.,

Founder 187

Founder Startup Valuation Pre-Money Valuation 187

venturehacks.com

OCTOBER 21, 2010

If you don’t keep your eyes on the option pool while you’re negotiating valuation, your investors will have you playing (and losing) a game that we like to call: Option Pool Shuffle You have successfully negotiated a $2M investment on a $8M pre-money valuation by pitting the famous Blue Shirt Capital against Herd Mentality Management.

Option Pool 68

Option Pool Pre-Money Valuation Dilution Warrant 68

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

www.paulgraham.com

APRIL 28, 2010

Iknow of one startup that got from an angel investor what amountedto a five hundred pound handshake: after deciding to invest, theangel presented them with a 70-page agreement. The startup didnthave enough money to pay a lawyer even to read it, let alone negotiatethe terms, so the deal fell through. So theyre going to raise $200,000.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

VC Cafe

JANUARY 20, 2014

Across all investment stages, median pre-money valuations last year rose dramatically. The bull market will celebrate its 5 th anniversary in March (NASDAQ grew 38.3% last year, more than any other major index), and the IPO market is booming. Now the cost of entry to the Party is rising. Seed-stage deals now require $5.1

Venture Capital 155

Venture Capital Pre-Money Valuation IPO 155

dondodge.typepad.com

JANUARY 15, 2011

So they will give you a pre-money valuation somewhere around the amount you raise. Sounds strange, but it usually works out that if you are raising $2M the VCs will value your company at $2M pre-money, and $4M post money so they end up with 50% of the stock.

Equity 40

Equity Employee Dilution Valuation 40

Altgate

MAY 24, 2012

As a whole, Zuckerberg, his co-founders, and his former and present employees, own about 55% of Facebook. of my book, The Founder’s Dilemmas: Anticipating and Avoiding the Pitfalls That Can Sink a Startup , the averages for technology startups are as follows: First round: Raise $3 million, with a pre-money valuation of $5 million.

Pre-Money Valuation 43

Pre-Money Valuation Cofounder Dilution Valuation 43

Business Plan Blog

DECEMBER 26, 2013

This process may include the provision of various scenarios on revenues and costs as the investors validate forecasts initially presented. Pre-money valuation. The term sheet is a legally binding document and should include the following elements: - Offer terms, such as: Company, founder and investor details.

Angel Investor 51

Angel Investor Due Diligence Pre-Money Valuation Angel Groups 51

www.paulgraham.com

OCTOBER 23, 2010

We didnt just give canned presentations at trade shows.We If you give an investor new shares equal to 5% ofthose already outstanding in return for $100,000, then youve donethe deal at a pre-money valuation of $2 million. Ididnt realize that when we were raising money. Thereis no rational way.

Startup 105

Startup Cofounder Software Stock 105

www.paulgraham.com

APRIL 28, 2010

2 ] When you negotiate terms with a startup, there are two numbers youcare about: how much money youre putting in, and the valuation ofthe company. The valuation determines how much stock you get. Ifyou put $50,000 into a company at a pre-money valuation of $1million, then the post-money valuation is $1.05

Angel Investor 63

Angel Investor Syndicate Syndication Dilution 63

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