YoungUpstarts

NOVEMBER 15, 2020

Get an accurate valuation. Ask nicely and many real estate agents will give you a free valuation on your home. Once you have at least three valuations you can settle for a price tag that’s somewhere in the middle.

Valuation 246

Valuation Sales Product Marketing 246

Both Sides of the Table

SEPTEMBER 29, 2009

They should heed the age old advice that raising slightly more money while you can is always better than trying to optimize future valuations. Should VC’s really be impacted by public market valuations when the money that they’re investing today should be for returns in 7-10 years? Short answer – yes. The deal was done in late 2007.

Burn Rate 263

Burn Rate Valuation Pre-Money Valuation Private Equity 263

Startup Professionals Musings

NOVEMBER 14, 2010

The trophy investor wants to know how much money is needed, where the money will be spent, how long it will take to spend it, the long term strategy for future spending and funding, and how the valuation will grow over time. Planning for valuation growth and investor exit should begin prior to the investment. Participation.

Intellectual Property 265

Intellectual Property Balance Sheet Phoenix Arizona 265

Startup Professionals Musings

SEPTEMBER 9, 2010

It’s higher risk, but higher return, to pick the big winners early, before angels have set unreasonable valuations and restrictive terms. More sources of funding for early-stage startups may drive up valuations on these deals, which will lower the returns for the angels and super-angels willing to do these deals. Marty Zwilling.

Technical Review 215

Technical Review Early Stage Venture Capital Startup 215

Both Sides of the Table

SEPTEMBER 25, 2010

Either would be fine with startups, so long as they can easily change their valuation. When I was raising money in late 1999 I had an investment team in Germany (I was in the UK) suggest that they should get a lower valuation than others because they were ex McKinsey guys and had better access to industry. I agree on all points.

Finance 286

Finance Term Sheet Technical Review Warrant 286

Both Sides of the Table

OCTOBER 11, 2009

But if you approach them with a very fair valuation and ask for a small check (say $10k, which should be nothing to someone in this position) I believe you’ll have a reasonable shot at it provided that you actually have an interesting company. At a $2 million valuation this is 0.5% of the company – about right.

Advisory Board 306

Advisory Board Startup Equity Valuation 306

Both Sides of the Table

APRIL 15, 2010

billion valuation. They only recently raised $30 million at around a $300 million valuation and THAT raised eyebrows. The investor isn’t disclosed (or I haven’t seen it) but it’s rumored to be DST, the Russian investors who invested in Zynga and Facebook (at a $10 billion valuation).

Venture Capital 271

Venture Capital Affiliate Valuation San Francisco 271

Both Sides of the Table

AUGUST 23, 2010

When I was looking through some questions to see if I could answer them I noticed that topic suggestions were getting attached in real time like tags. I saw some questions where the tags looked wrong. At an $86 million, pre-money valuation Benchmark sure did pay up for this investment. Tags: Tech Market Analysis.

Silicon Valley 301

Silicon Valley Pre-Money Valuation Technical Review Software Review 301

ReadWriteStart

NOVEMBER 22, 2010

The survey looks at the valuations and the terms of financing for over 100 technology companies in Silicon Valley that reported raising capital in the third quarter of this year. And not surprisingly, perhaps, the survey found that valuations are up. Tags: Analysis. The full survey can be downloaded here.

Silicon Valley 115

Silicon Valley Venture Capital Valuation Down Round 115

Startup Professionals Musings

JULY 3, 2010

Often, the number one question that entrepreneurs fail to address is: “How much money do you need, and what valuation do you place on your company?” Tags: entrepreneurs funding startups business. Lack of clear objectives/goals. Then you have to have evidence to support your request. Use them and win. Marty Zwilling.

Software Review 239

Software Review Due Diligence Elevator Pitch Startup 239

Both Sides of the Table

AUGUST 14, 2009

If you’re three s -hot kids from Stanford, Caltech or MIT you might be able to push valuation higher. Because I believe that getting the best possible angels around the table is far more important than ultimate valuation. Your angels are happy when you do the VC round because it is a “step up&# in valuation if possible.

Silicon Valley 291

Silicon Valley Ireland Technical Review Valuation 291

Both Sides of the Table

SEPTEMBER 23, 2010

At what valuation? So if two investors even go so far as to agree to fix prices, which is issue 1, the company should say no thanks to that valuation and keep shopping for other lenders, of which there are many, to get a better price. Tags: Startup Advice. Have you looked at competition? How well financed is the competition?

Entrepreneur 292

Entrepreneur Technical Review Stealth Valuation 292

Startup Professionals Musings

SEPTEMBER 23, 2010

It should answer every question an investor or associate might ask, including current valuation, funding needed, and exit strategy. Tags: entrepreneur startup funding angel investors. As a founder, you may think that everyone understands your vision and plan from your passion and words, but it doesn’t work that way. Marty Zwilling.

Angel Investor 224

Angel Investor Intellectual Property Technical Review Elevator Pitch 224

Startup Professionals Musings

FEBRUARY 5, 2010

That will position the startup to raise a venture round at a favorable valuation. Tags: entrepreneur startup angel funding burn rate. The cash will be burned on the team salaries and operating expenses of the startup, and should provide enough runway to build an initial product, get a few customers, and an initial revenue stream.

Burn Rate 120

Burn Rate Startup Salary Equity 120

Both Sides of the Table

OCTOBER 21, 2009

Pure Digital to Cisco) but that even the 2nd largest will get much lover valuations. cheap) but there was a sentiment that some funds will likely be raised in the next 3 years to buy out VC positions at more fair valuations. . Jamie’s view is that the healthiest company in any sector will still command outsized returns (e.g.

Technical Review 241

Technical Review IPO Southern California Venture Capital 241

Startup Professionals Musings

MAY 22, 2010

Intellectual property is a large element of most early-stage company valuations, and this value determines what percent of the company an investor will expect to get for his money. Tags: entrepreneur traction startup investors business. It’s also the keystone to convincing investors that you have a “sustainable competitive advantage.”

Intellectual Property 222

Intellectual Property Sweat Equity CTO Hire Fractional CTO 222

Both Sides of the Table

OCTOBER 1, 2009

This has a tangible impact on the valuation of start-ups and the pace of investment. Tags: Pitching VCs Start-up Advice VC Industry startup technology vc venture capital. Bad stock markets mean less IPO’s and lower prices for M&A. If the stock market holds then the pace of VC may hold steady.

Technical Review 269

Technical Review Stock Hawaii Early Stage 269

Startup Professionals Musings

JUNE 6, 2010

Some non-profit entrepreneurs think they can skip the whole plan, rather than just the sections on valuation, equity offered, and exit strategy. Tags: entrepreneur startup angel investors business. You still start the process with a business plan, but then you look for a philanthropist rather than an investor. That’s a higher calling.

Angel Investor 143

Angel Investor Technical Review Exit Strategy Equity 143

Both Sides of the Table

JULY 25, 2010

The key to this strategy is getting 5 people who form the social proof to help you get a bigger angel round done at a higher valuation by tons of industry insiders and thus offering the social proof you need attract great employees and ultimately venture capital investors. Tags: Raising Venture Capital Startup Advice.

Silicon Valley 293

Silicon Valley Technical Review Southern California Angel Investor 293

Steve Blank

SEPTEMBER 14, 2009

Underwriters realized that as long as the public was happy snapping up shares, they could make huge profits on the inflated valuations (regardless of whether or not the company should have ever been public.) The valuations for acquisitions were nothing like the Internet bubble, but there was a path to liquidity, difficult as it was.

Silicon Valley 217

Silicon Valley IPO Technical Review Venture Capital 217

Startup Professionals Musings

MARCH 1, 2010

Use this approach before you have a real valuation, a real product, or any real customers. Tags: entrepreneurs startups funding sources business. Just don’t quit your day job before your new company is producing revenue. Friends and family.

Technical Review 149

Technical Review Bootstrapping Startup Venture Capital 149

Both Sides of the Table

NOVEMBER 9, 2009

So we know that our valuation will be lower than others who would have already raised $4 million.&# He then went on to describe a phenomenal set of biz dev partnerships that they had signed and showed me a very cool product. Tags: Raising Venture Capital Start-up Advice. We rebuilt everything in Flash and now have a better product.

Venture Capital 264

Venture Capital Due Diligence Flash Strategic Investors 264

YoungUpstarts

JULY 14, 2020

We call this “small luxury,” because it feels personal and delivers happiness, but doesn’t have the price tag of a Tesla. More importantly, it decreases your channel risk through diversification and also helps increase the overall valuation of your business. Connect With Your Audience.

eCommerce 200

eCommerce Channel LLC Curation 200

Growthink Blog

MAY 13, 2010

Of most interest is the story of Mr. Peter Thiel investing $500,000 into the company in 2004, at an effective valuation of $4.9 Tags: Investing Jay Turo. A fantastic article in Fortune Magazine this month - " The Temptation of Facebook ," talks about the early days of the social media giant.

Technical Review 91

Technical Review Social Media Valuation Channel 91

Altgate

DECEMBER 16, 2010

@altgate Startups, Venture Capital & Everything In Between Skip to content Home Furqan Nazeeri (fn@altgate.com) ← Pre-Money Valuation vs Number of Founders Where Do Tech VCs Invest? But first, let’s look at pre-money valuation by liquidation preference. and 2X had an average pre-money valuation of $8.6

Liquidation Preference 39

Liquidation Preference Pre-Money Valuation Term Sheet Valuation 39

Both Sides of the Table

MAY 19, 2010

Current round: $35mm in Series C (extension of Series B at higher valuation) from General Atlantic, Matrix Partners. Tags: Start-up Advice. -CEO hinted to WSJ that it may go public in early 2011. Competes with HauteLook , RueLaLa (sub of GSI Commerce) , Billion Dollar Babes , ideeli , Glam List. Total raised: $15.0mm.

Partner 240

Partner New York City Cofounder Syndicate 240

ReadWriteStart

DECEMBER 31, 2013

Snapchat may be a company with no revenue and an unrealistic valuation, but it is changing the way people think of messaging. The one-armed robot fetches a $35,000 price tag , and in the world of robotics, is relatively inexpensive. Or it could be the next Facebook. Time will tell.

Startup 60

Startup Cofounder San Francisco Software Review 60

Both Sides of the Table

APRIL 8, 2010

My answer: “no.&# I believe that the team is high potential but the valuation seems stratospheric to me for the stage of the company. Quora ( funding led by Benchmark at a crazy valuation: $86 million ). Crazy valuation. Tags: VC Industry. I was asked if I would pay $80 million. and much more.

Venture Capital 232

Venture Capital IPO Valuation Deal Flow 232

www.paulgraham.com

OCTOBER 23, 2010

Youdnegotiate a round size and valuation with the lead, whod supplysome but not all of the money. Standardized paperwork will do away with the need tonegotiate anything except the valuation, and that will get easiertoo. Butthere may not have to be just one valuation. In the old days, the standard m.o.

Startup 93

Startup Valuation Non-Compete Deal Flow 93

Startup Professionals Musings

SEPTEMBER 14, 2010

The price is the percent of ownership given to the investor, calculated as “investment/post-money valuation.” The pre-money valuation is company value today, while the post-money valuation is the pre-money valuation plus the investment amount. Tags: entrepreneur startup angel investment term sheet business.

Term Sheet 227

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

Both Sides of the Table

MARCH 6, 2010

That is in stark contrast to the late 90’s goldrush where VC partners made millions overnight as their companies IPO’d for crazy valuations. Tags: Tech Market Analysis VC Industry. On the positive side, we have a portfolio and therefore more diverse chances of success. I own the results.

Technical Review 312

Technical Review Due Diligence Spain Warrant 312

The Equity Kicker

FEBRUARY 27, 2014

Finally a note on Whatsapp’s valuation – the $16bn price tag ($19bn including employee retention bonuses) is best understood in the context of Facebook’s valuation ( $180bn as I write this). They process 50bn messages per day with 99.9% uptime and a service so good that 72% of active users come back daily.

Product 123

Product Valuation Retention Acquisition 123

Jason Ball

SEPTEMBER 28, 2010

Don’t sweat the valuation too much. If this is your first start up, you’re not going to get a great multi-million dollar pre-money valuation, nor a lot of cash up front. A $5M Series A is pretty spectacular, and even a $10M pre-money valuation for twitter would have been a good result. Be like Jack.

Pre-Money Valuation 34

Pre-Money Valuation Valuation Dilution Venture Capital 34

Both Sides of the Table

SEPTEMBER 6, 2010

We set our sites on our IPO price and then worked back to our current valuation and showed potential employees what we thought they could earn (with all legal caveats) if the company was successful. There’s a difference between companies wanting to hide valuations and investors doing so. Tags: Startup Advice.

Stock Options 294

Stock Options Stock Valuation Liquidation Preference 294

YoungUpstarts

FEBRUARY 6, 2014

Be realistic about your valuation. A savvy investor can sniff-out unrealistic valuations, so do your research and offer a realistic price tag. Investors hear hundreds of pitches, so it’s important that yours is concise and packs a punch! Fired-up entrepreneurs have a tendency to believe their idea is worth more than it is.

Cofounder 154

Cofounder Elevator Pitch Early Stage Valuation 154

ReadWriteStart

SEPTEMBER 10, 2010

Why not go further, develop more valuation, customer experience, and really, deeply validate the business? Tags: StartUp 101. So, in Gio's situation, it is clear to me that he is able to get customers to buy. In that case, why bother wasting time trying to raise money right now? I personally have nothing against venture capital.

Cloud 115

Cloud Silicon Valley Incubator Finance 115

Berkonomics

MARCH 28, 2019

First: Is the price paid for shares by previous investors excessive, creating a post-money valuation too high for the actual value of the company? No one wants to face this, but the need for money and the possible overpricing of the first rounds may have created an unsustainable valuation.

Limited Liability Company 48

Limited Liability Company Post-Money Valuation Valuation Down Round 48