Remove 2008 Remove Cofounder Remove Social Network Remove Term Sheet
article thumbnail

Instead of sticking a fork in the venture market, realize. there is no fork

This is going to be BIG.

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? This is a company that, according to the article, got term sheets from half of the VCs that expressed interest in the company. There is no fork.

article thumbnail

What Most People Don’t Understand About How Startup Companies are Valued

Both Sides of the Table

When I was an entrepreneur there was no public information about how term sheets worked or how investors thought. That was written in September 2008. Social networking finally came of age connected the planet and leading to enormous wealth creation for Facebook employees and investors. All of these are false.

Valuation 150
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Channel your Inner VC to Understand Startup Valuations

www.currentlyobsessed.com

I have to admit, the light bulb didn’t go off for me until I was negotiating term sheets. Read Terms that Hurt (Venture Hacks). Read up on the “unwritten terms&# in term sheets having to do with exit multiples here For bootstrappers, the math is even easier: 100% of the upside goes to you and your awesome team.

article thumbnail

ProfessorVC: How much is enough?

Professor VC

Since the iControl system chronicles all meetings, I was able to find the automatic picture snapped from my first meeting with the founders, Reza Raji and Chris Stevens on April 22, 2004. But of course, the model had us requiring only $10M equity to breakeven and to achieve $185M in revenues in 2008 (the magic Year 5 in all business plans).