Both Sides of the Table

OCTOBER 21, 2009

On the third Wednesday of every month I co-chair a meeting called the SoCal VCA (venture capital alliance), which represents participants from all of the top venture capital firms in Southern California as well as prominent members of the Tech Coast Angels (TCA). What have been your experiences in the past 6 months?

Technical Review 241

Technical Review IPO Southern California Venture Capital 241

The Startup Magazine

JANUARY 17, 2024

Entrepreneurs also encounter the intricacies of terms and valuation. You can also consider doing syndication, much like how real estate syndicators make money where they pool their resources in order to allow investors to access larger and more profitable deals than they could alone.

Due Diligence 127

Due Diligence Angel Investor Syndicate Syndication 127

Feld Thoughts

JUNE 10, 2022

[Brad Feld] says his “strong belief” that “just doing a clean resetting — at whatever the valuation so that everybody is aligned and dealing with reality — is much, much better for a company.” especially when many existing investors are currently willing to add on additional dollars at the most recent valuation.

Down Round 162

Down Round Ratchet Liquidation Preference Participating Preferred 162

VC Cafe

JANUARY 24, 2021

It’s enough to see the rapid adoption of new social platforms from Signal in messaging to Clubhouse’s $1 billion valuation in less than a year. In 2021, optimism on investing in social media has returned. Read A16Z’s social strikes back series to get a feel of just how much movement is in this space.

Technical Review 207

Technical Review Audio Forecast Social Media 207

Startup Professionals Musings

JANUARY 22, 2020

Typically, individual investments will be less than $100K, but a group of angels may syndicate multiples. Venture capitalists, on the other hand, rarely consider requests below $2M. Set a realistic valuation for your startup to attract angels. Successful valuations above $5M are rare for startups.

Angel Investor 322

Angel Investor Valuation Syndicate Syndication 322

Both Sides of the Table

MAY 19, 2010

Our guest this week on #TWiVC was Dana Settle , partner at Greycroft Partners , a venture capital firm with offices in New York and Los Angeles. Current round: $35mm in Series C (extension of Series B at higher valuation) from General Atlantic, Matrix Partners. Read more: TechCrunch , Reg Form D , WSJ interview w/ Susan Lyne.

Partner 240

Partner New York City Cofounder Syndicate 240

David Teten

JULY 12, 2017

Although EquityZen is primarily an online marketplace for secondary shares in private companies, they also offer syndicated primary investments. Hence, if Sequoia is the lead and the valuation is reasonable, it’s near 100% chance. Market Insight. Alpha pursues a similar model.

Syndicate 60

Syndicate Syndication Institutional Investors LP 60

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. 2011 Angel Group Valuation Survey.

Angel Groups 125

Angel Groups Valuation Pre-Money Valuation St. Louis 125

Pascal's View

JULY 9, 2017

This is a fundamental issue that does, indeed, boil down to understanding the post-money valuation of a company. At its core, this issue points to the lack of understanding about the importance of post-money valuation by both entrepreneurs and investors. But it is also a topic that many find esoteric and difficult to grasp.

Post-Money Valuation 49

Post-Money Valuation Valuation Cap Table Covenant 49

Both Sides of the Table

APRIL 27, 2014

I was having dinner with a friend last night and we were chatting about venture capital and a bit about what I’ve learned. If we got an offer to raise $25 million to grow would she take it or be too worried about exit price, dilution, valuation expectations, etc. They worry too much about missing out on a deal.

Cofounder 374

Cofounder Syndicate Syndication Early Stage 374

Gust

OCTOBER 20, 2011

Individual accredited investors in typical angel deals put personal capital at risk for an equity share of growth-oriented, start-up companies. In 2011, the valuation of pre-revenue, start-up companies is typically in the range of $1.5–$2.5 Scorecard Valuation Methodology. million, indicating a somewhat normal distribution.

Valuation 146

Valuation Pre-Money Valuation Intellectual Property Technical Review 146

This is going to be BIG.

MARCH 3, 2014

At what valuation? Would the entrepreneur enthusiastically include them in the syndicate of their next venture? Venture Capital & Technology' How long ago? Are they making real revenue? Are the exit prospects for the company any good? Even if their record looks good because of that deal, was it really their deal?

Syndicate 124

Syndicate Syndication Venture Capital Valuation 124

David Teten

JULY 23, 2019

See How VCs structure a syndicate and recruit coinvestors for more on this. – Fundraising history summary, including notable current investors and last round valuation. . Though these tools can be helpful to the syndication process, I believe it will largely remain a relationship-based process for some time to come. .

Portfolio 60

Portfolio Elevator Pitch Syndicate Syndication 60

Professor VC

APRIL 1, 2010

One comment made by Jason was that angels tend to be less sensitive than VCs on valuation and can potentially make it difficult to get a venture financing done at acceptable valuation. We are typically looking at either smaller exits or require a lower valuation to get a reasonable step-up to a venture round.

Term Sheet 32

Term Sheet Angel Investor San Jose Venture Capital 32

David Teten

DECEMBER 3, 2019

Private equity and venture capital investors are copying our sisters in the hedge fund world: we’re trying to automate more of our job. . Close to 80% responded that manual processes, such as tracking down support, preparing reports and pulling data from different sources, are the biggest pain points they face in the valuation process.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Feld Thoughts

APRIL 29, 2015

Now that everyone is overly focused on unicorns, the headline number on the valuation (e.g. Company X raised Y at a valuation of Z from A, B, and C) has crept into the story on big rounds. in Funding: Here is the Valuation, Term Sheet and Why We’re Doing It. It’s what the press likes to write about (e.g.

Atlanta 70

Atlanta Valuation Term Sheet Finance 70

Both Sides of the Table

APRIL 3, 2010

This is part of my ongoing series on Understanding Venture Capital. I recently wrote a blog post on understanding how the size and age of a venture capital fund might affect you when you’re raising money. In my third seed deal we co-invested with a seed fund and then syndicated the rest to strategic angels.

Venture Capital 265

Venture Capital Term Sheet Early Stage Silicon Valley 265

Professor VC

JANUARY 17, 2008

One of my comments was that we would likely see more institutionalization of angel groups and syndication of deals among groups. If my math is correct, this is approximately a 31% IRR, which has to beat individual angel investments on aggregate and venture capital returns over the period of the study (1990-2007).

Pre-Money Valuation 28

Pre-Money Valuation Angel Investor Angel Groups Valuation 28

Cracking the Code

DECEMBER 9, 2006

Done deal: after a quick syndication with the kitchen team (their job was at stake, so they were easy to convince.), Detailed SaaS Spreadsheet (Valuation and CAC benchmark). SaaS 13 Index Valuation. Venture Capital. (3). Explore Venture Capital. S&M productivity (CAC ratio) for the SaaS 13 Index.

Software Review 48

Software Review Technical Review Europe Venture Capital 48

Babbling VC

JANUARY 7, 2011

I personally believe that one of the major drawbacks to venture capital in Europe is chronic under-financing and people skirt around this issue. Valuations were also therefore lower and I believe you could extrapolate that exit valuations too were lower. The fear of failure is truly holding back the risk takers!

Finance 76

Finance LP Europe Valuation 76

Rob Go

SEPTEMBER 2, 2014

When we started NextView, there were relatively few seed focused venture capital funds in the country, even fewer on the east coast, and almost none in the Boston area. In a frothy market, rounds can get done in this way at pretty high prices (or valuation caps for notes) albeit with less value-added investors involved.

Cram Down 66

Cram Down Institutional Investors Dilution Seed Stage 66

Professor VC

JULY 25, 2013

Mike Markkula presenting Steve Jobs with first investment in Apple I recently watched an excellent documentary on PBS, Something Ventured: Risk, Reward, and the Original Venture Capitalists. Another area where I''m not sure I stand is with some of the more formal referral and syndication programs that are emerging now.

Term Sheet 46

Term Sheet Silicon Valley Syndicate Syndication 46

Both Sides of the Table

FEBRUARY 25, 2010

We were trying to optimize around a few criteria: price, size of round, number of syndicate partners and, of course, terms. million at a $15 million pre-money valuation. Morgan Stanley had proposed a higher valuation to let them in. It quickly became impossible to raise venture capital. Yes, this was stupid.

Technical Review 301

Technical Review Term Sheet Due Diligence Venture Capital 301

Both Sides of the Table

AUGUST 1, 2010

It’s just that he’s a “super seed&# investor in a firm, Founder Collective , that I really respect (and with whom I’ve done two deals and hope to do a third) and I’m a partner in a venture capital firm, GRP Partners. So we’re bound to frame the issue in slightly different terms.

Post-Money Valuation 298

Post-Money Valuation Term Sheet Warrant Partner 298

Berkonomics

DECEMBER 17, 2020

Some can supply more when syndicating with other such groups. Email readers, continue here… ] The Angel Capital Association (ACA) lists over four hundred member groups, located throughout the USA. Then there is venture capital. Angel groups invest from $250,000 to $1,000,000 or more in qualified investments.

Equity 62

Equity Finance Liquidity Event Angel Groups 62

Rob Go

JANUARY 7, 2013

We have pretty strong guidelines internally about how much capital we want to invest in a given company, at what valuation, and thus, what ownership we are looking for. The fact that each member of our team has worked at larger, institutional venture capital firms is an important asset. Premium Service: 5. Commerce: 5.

Portfolio 49

Portfolio Seed Stage Cofounder B2B 49

Pascal's View

AUGUST 22, 2009

”, written by Mark Veverka, asserting that “venture capitalists want to widen the playing field for the underwriters.” ” The story includes quotes from former National Venture Capital Association (NVCA) chairman Dixon Doll of DCM and investment banker Paul Deninger, who is the vice-chairman of Jefferies & Co.

IPO 40

IPO Merger Institutional Investors Venture Capital 40

Professor VC

JUNE 20, 2011

We managed to pull together an angel syndicate and close $450K on 9/30 after working the phones the last few days and anxiously waiting for signature pages to show up on the fax machine and wire confirms to hit the bank account. Labels: angel investing , entrepreneurial finance , entrepreneurial lessons , venture capital.

San Jose 28

San Jose Angel Investor Term Sheet Venture Capital 28

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

David Teten

NOVEMBER 15, 2013

At my firm, ff Venture Capital, we’re trying our part to rethink how the industry works, and also actively looking for opportunities to invest in companies creatively disrupting this sector, e.g., our portfolio companies Addepar and Indiegogo. I think there are many more opportunities to disrupt the space. Photo credit: JD Hancock.

Management 114

Management Pre-Money Valuation Venture Capital New Hampshire 114

Professor VC

MARCH 12, 2015

It was a great product addressing a large market opportunity and was interested in seeing how the AngelList syndicate process worked. Due to confidentiality provisions, I can''t disclose details, but there are many very unhappy participants who invested through the syndicate. Syndicates can either be company led or investor led.

Syndicate 28

Syndicate Syndication Silicon Valley Common Stock 28

Feld Thoughts

JULY 14, 2015

Assuming equity is raised at or above that cap, the total dilution, before the new money, is 16.6% (equivalent to an equity financing of $1m at a $6m post money valuation. The term sheet converts all the convertible debt into a post-money valuation of $100, essentially making the convertible debt worthless. Sure – it happens.

Recapitalization 70

Recapitalization Pre-Money Valuation Post-Money Valuation Angel Investor 70

www.paulgraham.com

APRIL 28, 2010

Mechanics Angel investors often syndicate deals, which means they join togetherto invest on the same terms. In a syndicate there is usually a"lead" investor who negotiates the terms with the startup. Dont feel like you have to join a syndicate, though. The valuation determines how much stock you get. million, and youget.05/1.05,

Angel Investor 63

Angel Investor Syndicate Syndication Dilution 63

Professor VC

JUNE 6, 2016

When AngelList first launched syndicates a few years ago, I was very skeptical of the idea of angels taking carry on my investment. So what changed and why I am now launching a syndicate? In looking at how syndicates have developed, there have been a lot of positives for both angels and entrepreneurs. I got over it.

Syndicate 28

Syndicate Syndication Cap Table Ratchet 28

Both Sides of the Table

OCTOBER 18, 2015

There is a lot of uncertainty about the state of the private, high-growth technology markets and the venture capital markets that underpin them. Technology riches yield bumper crops in venture capital with new firms and new largesses – the rewards of LPs rediscovering our asset class. Are LPs to blame?

IPO 150

IPO Venture Capital LP SEC 150