Rob Go

AUGUST 29, 2016

Most term sheets talked about the valuation in these terms, and you added the dollars invested to get a post-money valuation. Founders also had to do a little math on the new option pool to really understand what their ownership would be post investment, since it was typically taken out of the company pre-money.

Post-Money Valuation 52

Post-Money Valuation Valuation Cap Table Term Sheet 52

Both Sides of the Table

JULY 22, 2010

How VC’s Calculate Valuation : We walked through a standard deal where you raise $1 million at a $3 million pre-money valuation leading to a $4 million post money valuation. If I get demand from people after this video to do a deeper dive on term sheets we will.

Valuation 405

Valuation Liquidation Preference Pre-Money Valuation Term Sheet 405

Both Sides of the Table

OCTOBER 12, 2014

All the confusion you hear from friends or read in the press is related to this nuance that early investors demand prorata rights and sometimes fight like hell to maintain them (Facebook problem) and sometimes prefer not to take them (overvalued company that they perceive isn’t doing as well as new investors coming in think).

Technical Review 336

Technical Review Later Stage Early Stage LP 336

www.mint.com

MARCH 9, 2010

What is the post-money valuation of your last round? Post-money valuation” is the value of the company after the last round of money was put in (again, lines of credit and promises don’t count). If the answer is, “Scaling fast enough for our anticipated demand,” try not to laugh. Sad, but true.

Software Review 68

Software Review Startup Post-Money Valuation Technical Review 68

Feld Thoughts

JUNE 2, 2015

But, I’ve seen some angels ask for it (or even demand it), especially when there is ambiguity around this and the round happens much higher than the cap. Mark has a superb example of how this works on his blog. pre ($25m post).” The simple solution is to define this clearly up front.

Liquidation Preference 70

Liquidation Preference Cap Table Angel Investor Post-Money Valuation 70

Altgate

DECEMBER 18, 2008

.&# From what I can tell the increase in the cost of capital for startups is partly to do with projections being revised down, but also (maybe even more so) because of a big mismatch in supply and demand for capital. Say you raise $8MM at $17MM pre-money ($25MM post) with a 3x participating preferred.

Liquidation Preference 31

Liquidation Preference Venture Capital Post-Money Valuation Participating Preferred 31

Board Effect

MAY 13, 2019

The realistic demands of cap table management will increase as your business grows and matures—that much is a no-brainer. Let’s assume your startup enters into negotiations at this stage with a neatly-formatted cap table, outfitted with equations for pre- and post-money valuation as well as equity dilution.

Cap Table 40

Cap Table Management Liquidity Event Dilution 40