View from Seed

AUGUST 30, 2019

I can see this being a doable deal at an $X pre-money valuation with a $Y check from us. ” . Combining the variables of these two dimensions would sometimes lead one of us to say that this is a “doable deal”, as in “ Well, they have decent traction and this seems like a reasonable market.

Pre-Money Valuation 174

Pre-Money Valuation Syndicate Syndication Valuation 174

View from Seed

SEPTEMBER 14, 2021

Back in 2018, my colleague Rob wrote a blog post about how the VC asset class is doing. Both early- and late-stage startup valuations are currently elevated. For context, seed-stage pre-money valuations are up 24% from H1 2020 to H1 2021. Or are current values inflated and unlikely to converge with DPI?

Valuation 319

Valuation Pre-Money Valuation Distribution Early Stage 319

View from Seed

SEPTEMBER 14, 2021

Back in 2018, my colleague Rob wrote a blog post about how the VC asset class is doing. Both early- and late-stage startup valuations are currently elevated. For context, seed-stage pre-money valuations are up 24% from H1 2020 to H1 2021. Or are current values inflated and unlikely to converge with DPI?

Valuation 295

Valuation Pre-Money Valuation Distribution Early Stage 295

ReadWriteStart

OCTOBER 7, 2010

So at any point, if you are trying to raise money, and you are hearing from investors that you are too early and have too little validation, it may be a good thing. As a thumb rule, try to get enough validation so that you can get to at least a $2 million pre-money valuation before raising equity capital.

Valuation 119

Valuation Silicon Valley Pre-Money Valuation Bootstrapping 119

This is going to be BIG.

OCTOBER 10, 2014

However, since I only have time for a blog post, I''ll settle for actual data. The criteria for what is a Seed and what is a Series A for these purposes is whether or not the first round of the company was within the same year that I did the investment, and it had to be less than $750k of prior money. Pre-Money Valuations (M).

Pre-Money Valuation 146

Pre-Money Valuation Dilution Valuation Term Sheet 146

Gust

MAY 15, 2015

After all, they just read in TechCrunch that investors funded a company similar to theirs at an $8 million pre-money valuation! The valuation of startup companies shouldn’t be impacted by location, should they? appeared first on The Gust Blog. Guess again! A Read more >.

Pre-Money Valuation 70

Pre-Money Valuation Silicon Valley Valuation Startup 70

Lightspeed Venture Partners

OCTOBER 7, 2012

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. The entrepreneur was clearly desperate.

Technical Review 110

Technical Review Technical Cofounder Valuation Pre-Money Valuation 110

Startup Professionals Musings

SEPTEMBER 6, 2010

The founders now need a $1M Angel investment to do the marketing for a national NewCo rollout, build a team to manage blogs and other resources, and maybe even pay themselves a salary. How much is NewCo worth to investors at this point (pre-money valuation)?

Valuation 234

Valuation Pre-Money Valuation NPV Startup 234

View from Seed

SEPTEMBER 14, 2021

Back in 2018, my colleague Rob wrote a blog post about how the VC asset class is doing. Both early- and late-stage startup valuations are currently elevated. For context, seed-stage pre-money valuations are up 24% from H1 2020 to H1 2021. Or are current values inflated and unlikely to converge with DPI?

Valuation 156

Valuation Pre-Money Valuation Distribution Early Stage 156

Both Sides of the Table

FEBRUARY 17, 2011

A year ago I blogged about one of my most common mantras that applies to sales, biz dev & fund raising alike: “ Time is the Enemy of all Deals.&#. When times are really good for fund raising many teams delay to maximize their valuation. You’re offered a $9 million pre-money to raise $3 million (e.g.

Pre-Money Valuation 303

Pre-Money Valuation Dilution Valuation PR 303

Gust

SEPTEMBER 27, 2014

With that background, here are 30 tips to help you make the most of Gust: Subscribe to the Gust Blog , and go back and read the past posts. Among the contributors are Quora regulars including Tim Berry , Antone Johnson , Martin Zwilling and me.

Angel Groups 159

Angel Groups Elevator Pitch Software Review Deal Flow 159

Startup Professionals Musings

MARCH 18, 2016

As an entrepreneur looking for professional investors, one of the quickest ways to lose credibility and get rejected is to start with a ridiculously high pre-money valuation. A rule of thumb used by investors is that real intellectual property can justify an additional $1 million in valuation.

Intellectual Property 120

Intellectual Property Valuation Pre-Money Valuation Startup 120

Altgate

OCTOBER 18, 2010

@altgate Startups, Venture Capital & Everything In Between Skip to content Home Furqan Nazeeri (fn@altgate.com) ← Startup Executive Compensation Scorecard Pre-Money Valuation vs Number of Founders → No one wants to tell you your baby is ugly Posted on October 18, 2010 by admin No one wants to tell you your baby is ugly.

Pre-Money Valuation 59

Pre-Money Valuation Venture Capital Valuation Lean 59

Agile VC

MAY 26, 2011

round which closed in November 2003, and the pre-money valuation between $10 million and $15 million. Your quote “startup fundraising isn’t about convincing skeptics but rather finding true believers” is amazingly true and made it into my blog “Founder Hacks” @ [link]. It was a $4.7M

Term Sheet 178

Term Sheet Silicon Valley Technical Review Social Network 178

Lightspeed Venture Partners

OCTOBER 1, 2012

pre money valuation). Cuban has interest in a gluten free diet, and claimed that he liked the company, but his only concern was valuation. The company came back and offered him 20% of the company for the $200k (an $800k pre money valuation). They were seeking $200k for 10% of the company (a $1.8M

Pre-Money Valuation 153

Pre-Money Valuation Valuation Participating Preferred Preferred Stock 153

View from Seed

OCTOBER 21, 2014

Using NextView as an example, since we both seek to lead the seed round and only lead during this round, I’ve seen this trend manifest in one of two ways: In a priced round, the entrepreneur will often share their valuation ask (or a stated floor) for the pre-money valuation of their company much sooner in the process.

Valuation 336

Valuation Founder Seed Stage Angel Investor 336

The Startup Lawyer

JUNE 22, 2010

If you follow this blog, you know that I think convertible debt is a good structure for a startup’s angel round. The main drawback is the quirk that the lower your pre-money at Series A, the more equity your angel investor gets. of the startup immediately after the Series A round. Convertible Note Price Cap.

Pre-Money Valuation 82

Pre-Money Valuation Angel Investor Preferred Stock Valuation 82

Tim Keane

JANUARY 12, 2010

An average of these ranges results in a pre-money valuation of about $4MM.   If similarly situated companies are seeing $3.5MM pre-money valuations, this might become the target valuation. An average of these ranges results in a pre-money valuation of about $4MM.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Professor VC

JANUARY 17, 2008

Again, I see nothing wrong with this, although entrepreneurs often prefer convertible debt as it defers the valuation discussion and leaves the Series A price for the venture firm to set. He also said they typically only invest at a $1 million pre-money valuation or less. Blog Archive. My Blog List.

Pre-Money Valuation 28

Pre-Money Valuation Angel Investor Angel Groups Valuation 28

Andrew Payne

MARCH 8, 2016

From a statistical analysis of over 6,000 startups, the paper (and article) argue (roughly) that founders with board control, the CEO position, or both, can “harm the firm’s prospects, reducing pre-money valuation by up to 22%.” ” Really?

Pre-Money Valuation 40

Pre-Money Valuation Founder Valuation Startup 40

K9 Ventures

MARCH 23, 2011

Yokum from WSGR has an excellent blog post that describes how the how the conversion discount and price caps in a note result in the company creating more liquidation preference than the amount of the money that the note holders have invested. There are multiple issues at hand here.

Pre-Money Valuation 132

Pre-Money Valuation Valuation Equity Liquidation Preference 132

Gust

NOVEMBER 4, 2011

In brief, a cap acts to place a limit on the conversion price of a convertible note such that investors are guaranteed a minimum number of shares for their bridge loans if the startup does a priced equity round at a high pre-money valuation – “high” meaning above the cap, which is often a heavily negotiated term. (The

Valuation 98

Valuation Pre-Money Valuation Merger Vesting 98

Growthink Blog

JANUARY 24, 2011

Let's say an investor buys 1,000,000 shares of stock in a company at $5/share and the company's total shares outstanding is 3,000,000 shares (implying a pre-money valuation of $10 million (2 million shares @ $5/share) and a post-money valuation of $15,000,000 (3 million shares @ $5/share)).

Preferred Stock 93

Preferred Stock Stock Common Stock Liquidation Preference 93

Business Plan Blog

AUGUST 6, 2013

Median pre-money valuations for angel deals remain unchanged from 2012 at $2.5M, dispelling the great ‘bubble myth.’ Highlights from angel investing in the last quarter include: The median angel deal size for Q1 2013 reached $680K – up 5% since last quarter and 24% since the same quarter last year.

Pre-Money Valuation 49

Pre-Money Valuation Angel Groups Angel Investor Valuation 49

www.mattbartus.com

DECEMBER 9, 2012

Let’s say you receive a term sheet for a $1 million investment at a $3 million fully diluted pre-money valuation, and you’re kind of disappointed. Take a look at the numbers: Pre-Money. One possibility is to negotiate a higher valuation and offer warrants (i.e., Post-Money. Option Pool.

Warrant 40

Warrant Valuation Pre-Money Valuation Term Sheet 40

ithacaVC

JUNE 3, 2015

Over the past few days there have been 2 important blog posts on convertible debt.

Liquidation Preference 40

Liquidation Preference Pre-Money Valuation Dilution Valuation 40

Rob Go

AUGUST 29, 2016

When I first started out as a VC nearly 9 years ago, most early stage company valuations were expressed as pre-money valuations. That is, the valuation of the company prior to the investment of new capital.

Post-Money Valuation 52

Post-Money Valuation Valuation Cap Table Term Sheet 52

Professor VC

FEBRUARY 12, 2015

Although I don''t blog for the sake of blogging, I am committed to writing more regularly this year. Former students who are readers of this blog may recall the Amazon IPO case from Entrepreneurial Finance class. In 2008, I made an investment offer of $250K for approximately 38% of the company ($400,000 pre-money valuation).

Las Vegas 28

Las Vegas IPO Pre-Money Valuation Valuation 28

VC Cafe

SEPTEMBER 26, 2022

ValuatIon should be a function of value, not ego. Kawasaki’s Law of Pre-Money Valuation: for every full-time engineer, add $500,000; for every full-time M.B.A., I’ll take the opportunity to wish readers of this blog a Shana Tova u Metukah ?? Our goals, their goals. subtract $250,000. Guy Kawasaki, author.

Founder 187

Founder Startup Valuation Pre-Money Valuation 187

ithacaVC

DECEMBER 14, 2011

Nothing better than sitting at LGA writing blog posts. With respect to the Series C round, let’s assume that the pre-money valuation is $12 million and that the VC investing is going to put in $4mm (and to keep things simple, let’s have only 1 Series C investor). I know……living on the edge.

Liquidation Preference 49

Liquidation Preference LP Preferred Stock Liquidity Event 49

Pascal's View

AUGUST 21, 2011

In April 2011, just prior to the Linked In, Pandora, and RenRen IPO’s, Fred Wilson reaffirmed his belief on his blog that we were not in a bubble in this sector: “I n all the posts over the past year or so outlining my thoughts on the financing and valuation environment in the internet sector, I’ve avoided using the word Bubble.

Valuation 50

Valuation Social Media Media IPO 50

K9 Ventures

MAY 14, 2011

The incubators invest usually for an equity stake and buy equity at a extremely low valuation (for example, 7% for $15,000, which implies a pre-money valuation of less than $200,000). or may come from VC firms (as is now the case with YC being funded by Sequoia ).

Preferred Stock 125

Preferred Stock Seed Stage Incubator Early Stage 125

crowdSPRING Blog

APRIL 26, 2013

The secrets of body language: why you should never cross your arms again | The Buffer Blog – [link]. Q1 Venture Capital Spending & Number Of Deals Down, M&A Activity Drops 44 Percent And Pre-Money Valuations Plummet – [link]. What is the best time to send email campaigns? Great data – [link].

Social Media 90

Social Media Small Business Design Media 90

thestartuplawyer.com

FEBRUARY 24, 2010

so glad we found this blog [too bad it was a little too late]. BTW, I tried visiting your blog but it crashes my Safari browser (Mac version) each time. I wrote a previous blog article regarding startup co-founders. [.] North says: June 9, 2009 at 8:50 pm Thanks for this whole blog its the best I have found.

Cofounder 40

Cofounder Founder Preferred Stock Startup 40

Both Sides of the Table

OCTOBER 14, 2011

million pre-money valuation, which is a $10 million post-money) you get diluted by 25% (2.5m / 10m). His personal blog with some great example is here. The simplest way to think about this is: If you own 20% of a $2 million company your stake is worth $400,000. If you raise a new round venture capital (say $2.5

Dilution 394

Dilution Pre-Money Valuation Startup Valuation 394

venturehacks.com

OCTOBER 21, 2010

If you don’t keep your eyes on the option pool while you’re negotiating valuation, your investors will have you playing (and losing) a game that we like to call: Option Pool Shuffle You have successfully negotiated a $2M investment on a $8M pre-money valuation by pitting the famous Blue Shirt Capital against Herd Mentality Management.

Option Pool 68

Option Pool Pre-Money Valuation Dilution Warrant 68

Hippoland

AUGUST 31, 2018

Every blog post needs a gif of a stuck kitty… It struck me that a lot has changed about the fundraising landscape in even just the last 3 years. And there’s a huge difference in valuation. So, if you’re on the border, running a solid fundraising process is especially important in affecting your valuation.

Pre-Money Valuation 90

Pre-Money Valuation Valuation Silicon Valley Early Stage 90