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. Labels: angel groups , valuation.

Pre-Money Valuation 28

Pre-Money Valuation Angel Investor Angel Groups Valuation 28

Genuine VC

JULY 30, 2012

By communicating pricing expectations with potential lead investors, I mean sharing either an “ask” or even stated floor for the pre-money valuation of the company (with a priced preferred round) or explicitly stating a valuation cap (for convertible note round).

Valuation 136

Valuation Pre-Money Valuation Angel Investor Syndicate 136

Up and Running

SEPTEMBER 20, 2021

For instance, the cap table will help you with various possibilities while running business activities like available options and pre-money valuations faster. Here is an example of a cap table after a round of funding, with a pre-money valuation of $1 million. percent going to Investor B, and 9.6

Cap Table 112

Cap Table Pre-Money Valuation Stock Options Option Pool 112

www.paulgraham.com

OCTOBER 23, 2010

Microsofts originalplan was to make money selling programming languages, of all things.Their current business model didnt occur to them until IBM droppedit in their lap five years later. Hackersshould do this even if they dont plan to start startups, because its the only real way to learn how to program. Thats nonsense.

Startup 105

Startup Cofounder Software Stock 105

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. Please try again. View an alternate.

Equity 40

Equity Employee Dilution Valuation 40

www.paulgraham.com

APRIL 28, 2010

The angel agrees to invest at a pre-money valuation of $1 million.The company issues $200,000 worth of new shares to the angel; ifthere were 1000 shares before the deal, this means 200 additionalshares. Now the group is looking for moremoney: they want enough to last for a year, and maybe to hire acouple friends.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

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.&# For example, liquidation prefs.

Valuation 42

Valuation Channel Pre-Money Valuation Term Sheet 42

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

Lightspeed Venture Partners

SEPTEMBER 23, 2012

They plan to franchise the model (presumably including selling equipment plus a certification program). post money valuation. Mark Cuban offered $300k for 33% of the company, implying a $900k post money valuation. Post money valuation = Pre money valuation + Investment.

Pre-Money Valuation 163

Pre-Money Valuation Post-Money Valuation Valuation Dilution 163