Genuine VC

JULY 19, 2010

The difference now is that given the structural changes in the market, seed-stage investors are more likely to be rewarded in valuation given the value which is created during this segment of the company’s life cycle.

Seed Stage 175

Seed Stage Technical Review Dilution Offshore 175

Genuine VC

JULY 30, 2012

By communicating pricing expectations with potential lead investors, I mean sharing either an “ask” or even stated floor for the pre-money valuation of the company (with a priced preferred round) or explicitly stating a valuation cap (for convertible note round).

Valuation 136

Valuation Pre-Money Valuation Angel Investor Syndicate 136

Genuine VC

MAY 29, 2014

The other is valuation of the next round of Series A financing. So while there are clear benefits of diminished financing risk to including a larger VC in a seed round syndicate, it comes at a direct trade-off in later upside valuation. Ability” to raise a subsequent Series A is only half the story.

Seed Stage 166

Seed Stage Syndicate Syndication Valuation 166

Genuine VC

JULY 8, 2014

raised, the first non-friends-and-family capital, comprised of one to three institutional seed investors or larger VC funds, on a priced equity structure (though sometimes convertible note), with a valuation mechanism in place priced in the single digit millions.

Early Stage 188

Early Stage Seed Stage Syndicate Syndication 188

Genuine VC

OCTOBER 18, 2011

You can find quite a bit of advice in the blogosphere about how to optimize around the most salient dimension: valuation. And savvy entrepreneurs realize that terms are just as important (and even sometime more so) than just the one figure of valuation.

Valuation 154

Valuation LP Boston Partner 154

Genuine VC

NOVEMBER 12, 2012

Given that this phenomenon is fairly pervasive, I think that there a number of takeaways for entrepreneurs who are raising early rounds of capital: While valuation is the most salient point in a deal and certainly important, terms matter quite a bit and A LOT more than most entrepreneurs pay attention to.

Finance 128

Finance Mezzanine Valuation Seed Stage 128

Genuine VC

JANUARY 10, 2012

The rationale for the negative effects of super pro-rata rights comes down to VC math in which the latter of the three dimensions for the next round - valuation, amount raised, and dilution % - already becomes artificially fixed. This scenario presents a number of troubling incentives.

Term Sheet 131

Term Sheet Burn Rate Valuation Dilution 131