Up and Running

SEPTEMBER 19, 2017

Currently, most ecommerce businesses have IT staff constantly running manual tests to confirm that their site is operating properly, or they manually create expensive software to run these tests. Takeaway lesson: A shocking number of technology startups never even get their first product out the door.

Private Equity 94

Private Equity Pre-Money Valuation Equity Startup 94

Startup Professionals Musings

SEPTEMBER 6, 2010

Once you have a potential investor excited about your team, your product, and your company, the investor will inevitably ask “What is your company’s valuation?” How much is NewCo worth to investors at this point (pre-money valuation)? This is the most concrete valuation element, usually called the asset approach.

Valuation 234

Valuation Pre-Money Valuation NPV Startup 234

Gust

NOVEMBER 18, 2012

Once you have a potential investor excited about your team, your product, and your company, the investor will inevitably ask “What is your company’s valuation?” How much is NewCo worth to investors at this point (pre-money valuation)? This is the most concrete valuation element, usually called the asset approach.

Valuation 187

Valuation Pre-Money Valuation NPV Intellectual Property 187

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

Both Sides of the Table

FEBRUARY 15, 2016

There is much talk these days that startup valuations have decreased and may continue to do so and that the amount of time it takes to fund raise may take longer. The earlier the round, the less capital you need and the more reasonable your valuation the less time that is needed generally to raise capital. Only you know.

Burn Rate 150

Burn Rate Cap Table Valuation Software Review 150

Gust

OCTOBER 12, 2011

During the summer of 2010, I developed a workshop, A New ACEF Valuation Workshop for Angels and Entrepreneurs. To provide some reference points, I surveyed thirteen angels groups in North American to determine their recent experience in negotiating the pre-money valuation of pre-revenue companies. Organization.

Angel Groups 125

Angel Groups Valuation Pre-Money Valuation St. Louis 125

Both Sides of the Table

AUGUST 23, 2010

Only later did I realize that this was part of Dharmesh Shah’s larger blog and that the software was based on the popular “stack overflow&# software. I felt that the Stack Overflow software made it much more obvious what I was supposed to do when I arrived. articles and leaves. No, really.

Silicon Valley 301

Silicon Valley Pre-Money Valuation Technical Review Software Review 301

Startup Professionals Musings

SEPTEMBER 30, 2011

Once you have a potential investor excited about your team, your product, and your company, the investor will inevitably ask “What is your company’s valuation?” How much is NewCo worth to investors at this point (pre-money valuation)? This is the most concrete valuation element, usually called the asset approach.

Pre-Money Valuation 246

Pre-Money Valuation Valuation NPV Intellectual Property 246

Gust

SEPTEMBER 27, 2014

One excellent way to do this (with a good bit of help from the experts), is to create a draft business plan using LivePlan from Palo Alto Software. If you share your material with a VC and get a polite response that you are out of their range, you should double check the investor’s profile page.

Angel Groups 159

Angel Groups Elevator Pitch Software Review Deal Flow 159

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. The earlier you back a startup the more important this is likely to be.

Pre-Money Valuation 187

Pre-Money Valuation Seed Stage IP Deal Flow 187

BeyondVC

APRIL 12, 2005

Combine this relative value with the fact that many tech companies, particularly large software companies, derive 50-70% of their revenue from annual recurring maintenance and you have an opportunity to buy out many of these businesses due to their predictable cash flow. for a company then no public software company is sacred.

LBO 60

LBO Pre-Money Valuation Technical Review Software Review 60

Berkonomics

SEPTEMBER 27, 2018

The company made little effort to charge for the software or community. 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.

Pre-Money Valuation 48

Pre-Money Valuation Sales Liquidity Event Valuation 48

Andrew Payne

MARCH 8, 2016

From a statistical analysis of over 6,000 startups, the paper (and article) argue (roughly) that founders with board control, the CEO position, or both, can “harm the firm’s prospects, reducing pre-money valuation by up to 22%.” ” Really? These five alone companies represent $1.5

Pre-Money Valuation 40

Pre-Money Valuation Founder Valuation Startup 40

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. The data presents a historical insight on a cap table that can affect the valuation of your startup when it comes time for a new round of fundraising.

Cap Table 112

Cap Table Pre-Money Valuation Stock Options Option Pool 112

Berkonomics

SEPTEMBER 17, 2011

The company made little effort to charge for the software or community. 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.

Liquidity Event 59

Liquidity Event Pre-Money Valuation Sales Valuation 59

www.paulgraham.com

APRIL 28, 2010

Another concept we need to introduce now is valuation. I say "in theory" because in early stageinvesting, valuations are voodoo. As a company gets more established,its valuation gets closer to an actual market value. As a company gets more established,its valuation gets closer to an actual market value. Better how?

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

www.paulgraham.com

OCTOBER 23, 2010

I wanted to work in the pure, intellectual world of software, not deal with customers mundane problems. Some believe only businesspeople can do this-- that hackers can implement software, but not design it. But it turned outthey didnt like us, because our software was easy to use and we hostedthe site. Thats nonsense.

Startup 105

Startup Cofounder Software Stock 105

dondodge.typepad.com

JANUARY 15, 2011

Both the entrepreneur and the investor have much higher expectations than just "even money" on their bet. The entrepreneur expects the company to be worth many times this valuation and so does the investor. The key is to have several VCs or investors competing for the deal to arrive at a "fair" valuation.

Equity 40

Equity Employee Dilution Valuation 40

crowdSPRING Blog

APRIL 26, 2013

Q1 Venture Capital Spending & Number Of Deals Down, M&A Activity Drops 44 Percent And Pre-Money Valuations Plummet – [link]. Legal Contracts for Software Developers Who Hate Contracts (w/free contract template to use today) – [link]. Downfalls of Distributed Startups – [link].

Social Media 90

Social Media Small Business Design Media 90

Altgate

MAY 24, 2012

When founders delay raising each round, they are typically hoping to achieve certain milestones that will raise the startup’s valuation. million, with a valuation of $10 million. Third round: Raise $7 million, with a valuation of $15 million. million, with a valuation of about $100 million. As shown in Figure 9.5

Pre-Money Valuation 43

Pre-Money Valuation Cofounder Dilution Valuation 43

Startup Lessons Learned

JUNE 19, 2019

Probably the biggest change that I've noticed in the Valley is the transition from startups focusing on hardware, to startups built on software, and what that implies about the venture model as well. The venture capitalists said, "Okay, let the angels invest at a $5 million valuation and take all of that market risk.

Silicon Valley 159

Silicon Valley Lean Venture Capital Pre-Money Valuation 159