View from Seed

SEPTEMBER 14, 2021

Both early- and late-stage startup valuations are currently elevated. For context, seed-stage pre-money valuations are up 24% from H1 2020 to H1 2021. Early-stage valuations are up 70%, and late-stage valuations are up 103% (source Pitchbook ). Source: Cambridge Associates.

Valuation 295

Valuation Pre-Money Valuation Distribution Early Stage 295

Agile VC

MAY 26, 2011

I certainly bear no ill will to the various firms that ultimately passed on our fundraise… as a seed stage VC myself now I can appreciate how hard it is evaluating companies at the earliest stages of development. round which closed in November 2003, and the pre-money valuation between $10 million and $15 million.

Term Sheet 178

Term Sheet Silicon Valley Technical Review Social Network 178

Startup Professionals Musings

SEPTEMBER 14, 2010

When a company is at its earliest seed stage, the terms tend to be the least complex. The price is the percent of ownership given to the investor, calculated as “investment/post-money valuation.” However, there is no set pattern of terms an entrepreneur might be able to anticipate from an angel, either. Seat on the board.

Term Sheet 227

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

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. Do you have relationships with other investors at the next stage of the investment lifecycle?

Pre-Money Valuation 187

Pre-Money Valuation Seed Stage IP Deal Flow 187

Gust

OCTOBER 17, 2011

When a company is at its earliest seed stage, the terms tend to be the least complex. The price is the percent of ownership given to the investor, calculated as “investment/post-money valuation.” However, there is no set pattern of terms an entrepreneur might be able to anticipate from either. Seat on the board.

Term Sheet 158

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

View from Seed

SEPTEMBER 14, 2021

Both early- and late-stage startup valuations are currently elevated. For context, seed-stage pre-money valuations are up 24% from H1 2020 to H1 2021. Early-stage valuations are up 70%, and late-stage valuations are up 103% (source Pitchbook ). Source: Cambridge Associates.

Valuation 156

Valuation Pre-Money Valuation Distribution Early Stage 156

This is going to be BIG.

JULY 30, 2015

so that's what I said my exits would be as a seed stage fund. I assumed the following: Seeds are done as a $1mm round on a pre-money valuation of $5mm. Series A's are done as a $5mm round on a pre-money valuation of $15mm. The average VC-backed exit is somewhere around $250mm.

Venture Capital 60

Venture Capital Pre-Money Valuation IRR Valuation 60

K9 Ventures

MARCH 23, 2011

There has been a lot of noise in the Valley lately about how most seed stage deals are now being done as convertible notes. If you think the answer is 5%, because the financing happened at the same pre-money valuation as the cap in the note, then you’re wrong.

Pre-Money Valuation 132

Pre-Money Valuation Valuation Equity Liquidation Preference 132

Gust

OCTOBER 20, 2011

This method compares the target company to typical angel-funded startup ventures and adjusts the average valuation of recently funded companies in the region to establish a pre-money valuation of the target. In most regions, the pre-money valuation does not vary significantly from one business sector to another.

Valuation 146

Valuation Pre-Money Valuation Intellectual Property Technical Review 146

K9 Ventures

MAY 14, 2011

The incubators invest usually for an equity stake and buy equity at a extremely low valuation (for example, 7% for $15,000, which implies a pre-money valuation of less than $200,000). The companies go through a 3-6 month long startup bootcamp and then typically try to raise angel/seed funding. Preferred Stock.

Preferred Stock 125

Preferred Stock Seed Stage Incubator Early Stage 125

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

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

Both Sides of the Table

SEPTEMBER 5, 2012

” And some seed stage investors told me, “I prefer not to fight over price now. As in, “your money into my company will convert at a 15-20% discount to the next round of capital I raise with a maximum price of $8 million pre-money valuation (or whatever the cap was).”

Ratchet 354

Ratchet Liquidation Preference Equity Stock 354

www.paulgraham.com

APRIL 28, 2010

So seed investors usually care lessabout the idea than the people. This is true of all venture funding,but especially so in the seed stage. Like VCs, one of the advantages of seed firms is the advice theyoffer. But because seed firms operate in an earlier phase, theyneed to offer different kinds of advice.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

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

VC Cafe

JANUARY 20, 2014

Across all investment stages, median pre-money valuations last year rose dramatically. Seed-stage deals now require $5.1 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. million.

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

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

www.paulgraham.com

OCTOBER 23, 2010

Because so little money is involved, raising seedcapital is comparatively easy-- at least in the sense of getting aquick yes or no. Usually you get seed money from individual rich people called"angels." the seed stage, investors dont expect you to have an elaboratebusiness plan. Thereis no rational way.

Startup 105

Startup Cofounder Software Stock 105

Rob Go

NOVEMBER 30, 2012

I was surprised to find that it has been more than two years since my post summarizing the state of the seed stage market, and trying to bring a balanced view on the rise of Super Angels and Micro-VC’s. The venture capital market continues to be in transition, and a lot of changes have occurred in the early stages of the market.

Seed Stage 55

Seed Stage Pre-Money Valuation Dilution Early Stage 55

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