Remove Burn Rate Remove Business Model Remove Social Network Remove Valuation
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ProfessorVC: Card Counting for Investors

Professor VC

RCSMs premise is that they can reach an investment decision (and valuation) based on an application completed by the founders and take gut feel out of the decision process. They have launched a valuation tool that is free to try out. Labels: due diligence , early stage investing , moneyball , valuation. Steve Bennet. at 2:32 PM.

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ProfessorVC: Why I Hate Convertible Debt.Let Me Count the Ways

Professor VC

In a convertible note structure, Im penalized for increasing your valuation. Instead of getting a 2-3x multiple from seed to Series A, I get a discount off of the Series A, so Im better off financially with a lower valuation. You may say, if you are investing in the next facebook or google, why care about valuation?

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ProfessorVC: Negotiating an Angel Deal in your PJ's

Professor VC

One comment made by Jason was that angels tend to be less sensitive than VCs on valuation and can potentially make it difficult to get a venture financing done at acceptable valuation. We are typically looking at either smaller exits or require a lower valuation to get a reasonable step-up to a venture round. ► January.

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ProfessorVC: Touched by an Angel

Professor VC

While currently free to angel groups, their business model revolves around aggregating the angel investment data. Another comment which probably deserves more discussion is around valuation. He also said they typically only invest at a $1 million pre-money valuation or less.

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ProfessorVC: Waah.Do I have to build a financial model?

Professor VC

Is the model consistent with the business plan? Does the business model make sense? Do you understand the business and market? The process of building the model forces you to answer the difficult questions related to the business model and give a complete picture of the opportunity.

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ProfessorVC: How much is enough?

Professor VC

I took a look back at our original financial model we presented to VCs in 2004. The business model (OEM through broadband and home security companies for mass distribution) if not specific product functionality has remained largely the same. Don't Stop Believin' Is There Any Truth in "The Social Network"?

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ProfessorVC: Would a Dart Board Provide better VC Returns?

Professor VC

A Comparison Between Novice and Serial Entrepreneurs" Her research shows that there is a positive correlation between prior founding experience and new venture performance due to stronger and more diverse social networks, access to capital, reliance on collaborators and other factors. A Lot of Horn Tooting over a Kazoo sized deal.