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Revisiting Paul Graham’s “High Resolution” Financing

Both Sides of the Table

When I first read Paul Graham’s blog post on “High Resolution&# Financing I read it as a treatise arguing that convertible notes are better than equity. As I’m generally a believer in ‘pricing rounds’ I initially didn’t agree with the premise of the post. Photo credit: D.

Finance 286
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Seed Stage Startups Are Now Graded on a Curve

View from Seed

Effective) post-money valuation. to build sitting at a $17M post-money is going to look fundamentally different than that exactly comparable startup which took only two years and $2M total capital at a $10M post- to get there. How much time has elapsed since company founding. 100K in MRR was cited).

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NextView’s Greatest Hits

View from Seed

Taking Corporate Venture Money: When it Makes Sense “PayPal took on these investors in small part because it gave us an imprimatur in the stodgy and regulated world of financial services. Finance is about reporting on historical performance and future planning through the lens of financial metrics.” ” (Lee Hower).

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The Authoritative Guide to Prorata Rights

Both Sides of the Table

New investors sometimes want early investors to put in money to “prove” they have confidence in the new price. In the old days there weren’t many fights about whether angels would take their prorata rights in financing rounds. Thus begins the dance. This is for a more complicated reason I call “the mark-up game.”

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Shark Tank Season 4 week 4 breakdown

Lightspeed Venture Partners

As Cuban pointed out, this is a “down round” Zomm is seeking $2M for 10% of the company, implying an $18M pre money valuation today. But the company had previously raised $5M for 17% of the company, implying a post money valuation after that investment of $29.4M. But I’d love your thoughts and comments.

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Shark Tank Season 4 episode 2 breakdown

Lightspeed Venture Partners

post money valuation. Mark Cuban offered $300k for 33% of the company, implying a $900k post money valuation. implying a $600k post money valuation. The company ended up negotiating with Cuban and settled on $300k for 30% of the company, or a $1M post money valuation.

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Guy Kawasaki’s 10 Questions to Ask Before You Join a Startup

www.mint.com

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). Check out the personal finance topic by clicking here. So easy on the eyes! I agree with him also.