Austin Startup

SEPTEMBER 10, 2017

TL;DR: Using a “tiered” valuation cap structure in a convertible note or SAFE can provide flexibility that bridges the gap between (i) what founders expect their company to be worth in the near future, and (ii) what investors are comfortable accepting now. Background Reading: The best seed round structure is the one that closes.

Valuation 48

Valuation Dilution Silicon Valley Seed Stage 48

This is going to be BIG.

SEPTEMBER 30, 2012

How else can you explain this headline matching a story about a professional social network still trying to explore revenues raising $17mm on an $80mm valuation? The reality is that, most of the time--like two thirds of the time--the venture market is totally open for good businesses to get fair valuations in reasonable turnaround times.

Venture Capital 114

Venture Capital Marketing Term Sheet Software Review 114

Both Sides of the Table

MARCH 6, 2015

I was out to raise my first seed money in my second startup of $500,000. If you want to understand the software trend that drove the creation of the seed-stage VC phenomenon I wrote about it that linked blog post but in short: cloud computing drove down the cost to create startups enabling a new category of investor.

Seed Stage 150

Seed Stage Silicon Valley Syndicate Syndication 150

Version One Ventures

DECEMBER 14, 2016

In other words, any correction in public valuations happened quickly and has now stabilized. From Series A and onwards, fundraising takes longer and valuations are typically below the expectations and benchmarks of 2015. At the same time, seed money is still abundant due to the proliferation of micro VC over the past few years.

Technical Review 60

Technical Review Early Stage Portfolio Valuation 60

Austin Startup

SEPTEMBER 17, 2017

Further, you demonstrate on your spreadsheet that a venture return to early investors is plausible at a valuation that gives you enough equity to get the job done and to take care of you and your team at exit time. Plan according to your baseline trend and don’t get carried away by sporadic deviations.

Valuation 48

Valuation Forecast Seed Money Business Model 48

Both Sides of the Table

AUGUST 1, 2010

I think the issue was mostly framed initially by Chris Dixon in his article The Problem with Taking Seed Money from Big VC s. If we can’t agree on price I tell entrepreneurs that they can raise money and say “GRP will speak for half of the round.&# Done – the only signal is positive.

Post-Money Valuation 298

Post-Money Valuation Term Sheet Warrant Partner 298

andrewchen.co

AUGUST 20, 2012

My reasoning looks something like this: Right now, startups with strong teams can easily raise seed funding ($200-$1.5M They can easily raise seed money because there’s a lot of willing investors in the ecosystem. Not sure how investors feel about it though, as valuations skyrocket and competition becomes fierce.

Seed Stage 51

Seed Stage Early Stage Mobile Seed Money 51