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What’s a Fair 409A Discount?

VC Adventure

As is true today, there was a requirement that options be priced at or above the “fair market value” of the underlying stock (otherwise there would be tax consequences to the optionee and sometimes to the company as well). Back in the olden days of venture capital, company boards had wide discretion in pricing company options.

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VC Optimism Returning But More Pain Ahead In Their Portfolios

Hunter Walker

At the time, this is last quarter and the stock market has trended upwards nicely since then (a potential leading indicator of private tech valuations), we all agreed venture portfolios were probably still 25-40% overvalued. Valuations. Whatever gets reported is just the tip of the iceberg.

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“I guess we’ll know we’ve made it when a woman can get away with behaving like Elon Musk.” Talking With VC Ashley Mayer About Finding Your Career, Taking Box Public, And Why She’s Not Interested In Reading Yet Another Female CEO Takedown

Hunter Walker

Our timing was brutal: the Box S-1 coincided with the start of a major market correction for SaaS stocks, and our newly revealed financials made us a natural poster company for that change in sentiment. In the process of investing, we became rather obsessed with helping founders build more diverse and impactful cap tables.

IPO 91
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VCs eating our own dog food: Using technology and analytics to make better investments

David Teten

Some notable metrics are revenue growth rates, free cashflow, leverage ratios, historical financing amounts, returns on marketing spend, customer acquisition costs, lifetime value of customers, customer churn rates, and team social scores. 645 Ventures released a cap table simulator to help level the playing field.

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On the Road to Recap:

abovethecrowd.com

Why the Unicorn Financing Market Just Became Dangerous…For All Involved. Many have noted that the aggregate shareholder value created by all of the Unicorns will vastly overshadow the losses from the inevitable failed unicorns. The same thing happened to many Internet stocks.

IPO 40
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Out of the Crisis #26: Brian Armstrong of Coinbase on cryptocurrency, being mission-oriented, and institution building

Startup Lessons Learned

It kind of aggregates technology content, I suppose. And of course, I wasn't really interested in the finance side of it to me. Brian Chesky is always trying to figure out how to put stock in the hands of his community and how to bring community input into the governance, because that's such an important part of the ethos of Airbnb.

IPO 113
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Customers Love Free Stuff … But That’s Not Your Problem

abovethecrowd.com

Also, take a look at this critically important data point , also aggregated by Professor Jay Ritter. These are the parties on the cap table prior to the transaction. They can’t sell the stock at this multiple and therefore that valuation is not available to them. of VC-backed companies vs Buyout-backed companies.

IPO 82