Both Sides of the Table

MAY 28, 2018

Let me check my plan.” There are many things a VC is looking for in reviewing your business plan but beyond things the like the quality of revenue, margins, OPEX and CAPEX there’s a really simple rule I call, “Cash In, Cash Out, Milestones Achieved.” Cash Out Cash out is when you’re out of money. Annoying, I know.

Burn Rate 247

Burn Rate Valuation Pre-Money Valuation Dilution 247

Austin Startup

JUNE 21, 2018

Our pre-money valuation for the seed round is 2 trillion dollars.” There’s a ton of people infusing cryptocurrency and blockchain into traditional businesses and asset classes claiming to have some revolutionary breakthrough when, in fact, the business value proposition is nothing more than, well, bananas.

Securities and Exchange Commission 61

Securities and Exchange Commission SEC Pre-Money Valuation Security 61

Gust

SEPTEMBER 27, 2014

To begin with, it is important to understand some basic facts about the world of entrepreneurial finance: There are many more entrepreneurs than there are investors, with the result that only one company out of every 400 that seeks venture funding actually receives it.

Angel Groups 159

Angel Groups Elevator Pitch Software Review Deal Flow 159

Lightspeed Venture Partners

NOVEMBER 19, 2012

This business can’t work. The next two entrepreneurs run a wine tasting cruise business. They had three stages to their plan. The first was to franchise their model, selling a captain a $35,000 boat and a business plan to replicate Corks Away for $175,000. I would speculate more like $40 at scale.

Pre-Money Valuation 166

Pre-Money Valuation Alabama Valuation Churn Rate 166

Tim Keane

JANUARY 12, 2010

Term-sheets and Valuations: Thinking about Negotiations. Please see later version of this post on May 16, 2010 Entrepreneurs are often not experts in the area of term-sheet negotiations and all of the surrounding issues.   Investors sometimes “present” the terms they’d like and expect the entrepreneurs to react.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

YoungUpstarts

SEPTEMBER 11, 2013

As an entrepreneur, you’ll face a bevy of challenges. Sometimes the list of challenges may feel never ending – from writing the business plan to finding the right partner – but one of the single most important challenges entrepreneurs face is calculating a realistic, defensible pre-money valuation. .

Pre-Money Valuation 133

Pre-Money Valuation Valuation Angel Investor Cofounder 133

Gust

OCTOBER 20, 2011

In 2011, the valuation of pre-revenue, start-up companies is typically in the range of $1.5–$2.5 million and is established by negotiations between the entrepreneur and the angel investors. Such comparisons can only be made for companies at the same stage of development, in this case, for pre-revenue startup ventures.

Valuation 146

Valuation Pre-Money Valuation Intellectual Property Technical Review 146