Both Sides of the Table

SEPTEMBER 28, 2014

but that’s our firm’s money on your balance sheet. We want money to make some acquisitions (investors would prefer to fund M&A if they know specific deals – not to encourage bad behavior. So a large part of your personal assessment on how much you can afford to burn also has to be your current valuation.

Burn Rate 383

Burn Rate Balance Sheet .Net Valuation 383

Agile VC

APRIL 17, 2011

Now that Google’s acquisition of ITA is closed, following lenghty FTC review, it would appear Kayak is poised to proceed with their IPO in the coming months. =. paying for travel data from ITA or others (customers acquisition spend is not included in COGS). Post-money valuation probably no higher than $12M (2).

Pre-Money Valuation 113

Pre-Money Valuation Liquidation Preference Dividend Common Stock 113

Both Sides of the Table

JULY 25, 2010

Anything requiring lead generation and/or customer acquisition I call Matt Coffin. We all want authorities who are smarter on specific topics than we are. So you need to find anchor tenants who have authority in your field and who are respected by other angel investors in order to maximize the benefits of social proof.

Silicon Valley 293

Silicon Valley Technical Review Southern California Angel Investor 293

Both Sides of the Table

MAY 13, 2013

But the press (and I suspect many of the senior execs of these companies) don’t really explore the corrosive downside of these acquisition. If I don’t commit to millions of dollars of acquisitions I will … die? But that’s not how you make money in the venture capital business. So I thought I would.

Liquidation Preference 357

Liquidation Preference Early Stage Retention Lock-up Period 357

View from Seed

JANUARY 11, 2017

But mainly we did it because these corporate VCs were among the only groups willing to invest at PayPal’s somewhat inflated post-money valuation, during the middle of the dot-com crash when traditional VCs pulled back sharply and other sources of funding were constrained.

Strategic Investors 120

Strategic Investors Post-Money Valuation Seed Stage Cofounder 120

Feld Thoughts

FEBRUARY 9, 2016

There are three things that will mess you up in the long run: Too much liquidation preference : My simple rule of thumb is that if you’ve raised more than $25m and your liquidation preference is greater than 50% of your post money valuation, you have too much liquidation preference.

Cap Table 70

Cap Table Down Round Liquidation Preference Founder 70

Lightspeed Venture Partners

SEPTEMBER 21, 2013

to fund the company at a $6M post money valuation from a number of investors including Selena Gomez. Despite having over 500k downloads and making $450k in revenue over the last 21 months, he had only $185k left in the bank, which meant that he would be out of business in 90 days if he didn’t raise more money.

Pre-Money Valuation 161

Pre-Money Valuation Valuation Dilution Distribution 161