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Quick Post on Post-Money Valuations

Rob Go

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.

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What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

I was reading Danielle Morrill’s blog post today on whether one’s “ Startup Burn Rate is Normal. So a large part of your personal assessment on how much you can afford to burn also has to be your current valuation. ” I highly recommend reading it. Profitability.

Burn Rate 383
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The $10 Million Photo and Other VC Stories

ReadWriteStart

They really wanted to invest, but it was the beginning of the bubble, and I wanted (what was then) an absurd valuation. All we had were six slides, and I wanted a $10 million post-money valuation. We had gone back and forth with them on valuation, but this was a new firm and they wanted to close a deal with us.

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A Guide to Using Authority & Social Proof in Fund Raising

Both Sides of the Table

I recently read a book I’d highly recommend to every reader of this blog called “ Yes, 50 Scientifically Proven Ways to be Persuasive &# by Robert B. Cialdini who is also author of a very well received book called “ Influence &# (which I plan to read).

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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. ” (Lee Hower). 7 Common Mistakes Entrepreneurs Make in VC Pitches and How to Fix Them “Different partners in a VC firm are different.

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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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Want to Know How VC’s Calculate Valuation Differently from Founders?

Both Sides of the Table

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. Now that I do they’re willing to accommodate?

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