Pascal's View

JULY 9, 2017

This is a fundamental issue that does, indeed, boil down to understanding the post-money valuation of a company. At its core, this issue points to the lack of understanding about the importance of post-money valuation by both entrepreneurs and investors. Many entrepreneurs lose track of what they have been cooking up in the cap table.

Post-Money Valuation 49

Post-Money Valuation Valuation Cap Table Covenant 49

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. Today, nearly all early stage term sheets I see are expressed as post-money valuations.

Post-Money Valuation 52

Post-Money Valuation Valuation Cap Table Term Sheet 52

View from Seed

DECEMBER 11, 2019

“I’m thrilled to announce that I’m joining [New Firm] as a Partner where I will continue to invest in great Founders across the industries I care about.”. “I In any professional service industry, there is natural shuffling in the junior roles, as the race up the pyramid towards a Partner title is like musical chairs.

Venture Capital 204

Venture Capital Cap Table Partner LP 204

David Teten

SEPTEMBER 23, 2017

PEVCTech is partnering with Blue Future Partners to run the first large-scale survey of VCs’ technology stack. Johann Kratzer of Blue Future Partners , a fund of funds, observed, “The majority of the hundreds of funds we’ve diligenced rely predominantly on their relationships to source deals. Greylock Partners.

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

techcrunch.com

APRIL 26, 2013

AngelList also partnered with SecondMarket to create an investment vehicle for these investments. That way, startups only have one entity in the cap table, which simplifies documentation and structure. No wonder the platform is rumored to be raising a round at a $150 million valuation or more. 2011 Holiday. Gift Guide.

SEC 61

SEC Accredited Investor San Diego New York City 61

www.readwriteweb.com

DECEMBER 29, 2011

If you're early in the investment process, a small angel round or partnering with an accelerator may be the best approach. Next, if you are going to raise a round, find one or two partners to do it with. Remember, once you screw up your cap table it's really hard to go back. Tip 2: Have A Real Lead.

Cap Table 47

Cap Table Term Sheet Liquidation Preference Technical Review 47

View from Seed

JUNE 11, 2019

I believe it’s more important to optimize on the right lead investor vs. the highest valuations at the seed stage (within reason). Building relationships with multiple partners at the firm. Having the lead partner agree to monthly “check-in” meetings post investment. Remember Goldilocks, not too many, not too few.

Syndicate 202

Syndicate Syndication Seed Stage Lead Investor 202

The Startup Toolkit

AUGUST 29, 2012

If you aren’t taken seriously by customers & partners , a highly credible industry advisor will be able to open every door for you. You probably don’t need to get the cap table involved in that. Just adding their stamp of approval to your pitch can make a world of difference.

Technical Review 38

Technical Review CTO Hire Cap Table Software Review 38

View from Seed

OCTOBER 15, 2014

This is pulled from NextView’s board deck resource, which was compiled using a combination of real startup board decks and input from NextView’s founding partners: Rob Go , David Beisel , and Lee Hower. Here’s an exact, step-by-step breakdown of how we’d recommend structuring it.

Seed Stage 331

Seed Stage Cap Table Metrics Burn Rate 331

Berkonomics

JUNE 8, 2017

I’ve arrived at a significant number of companies that were looking for additional growth capital after a “friends and family” round, and had to “clean up” the cap table more than a few times over the years. Strategic partner” investors: If you can find a strategic partner willing to invest in your enterprise, consider it a blessing.

Private Equity 106

Private Equity Valuation Cap Table Accredited Investor 106

David Teten

DECEMBER 3, 2019

But in business, you want a lot of partners. In the private equity universe, most Partners have primary training as deal-makers, not as managers. See Bessemer Venture Partners’ A comprehensive guide to security for startups. Cobalt for General Partners helps GPs to optimize their fundraising strategy. 1) Manage the firm

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

David Teten

JULY 12, 2017

I thought it might be helpful to provide transparency on how we and many of our VC peers think about optimizing the cap table for our companies. . First, a formal definition: According to Capital Dynamics , “Co-investments are direct investments in a company made alongside and on the same terms as a lead [General Partner].

Syndicate 60

Syndicate Syndication Institutional Investors LP 60

Board Effect

MAY 10, 2019

Capitalization tables—”cap tables” for those who don’t have time for extra syllables—map the balance of power in a company. If org charts are about people power , cap tables are about money power. In reality, however, cap tables are often far more complex. What is a cap table?

Cap Table 40

Cap Table Liquidation Preference Dilution Liquidity Event 40

genylabs.typepad.com

SEPTEMBER 24, 2011

Steve and Carolyn are partners at Emergent Research and Senior Fellows at the Society for New Communications Research. I wont bother going into details on start-up financing terms ( see this post for an overview of typical VC terms) except to say if you dont know and understand: the firms cap table and valuation.

Equity 40

Equity Technical Review San Jose Stock 40

This is going to be BIG.

DECEMBER 21, 2017

In AH's case, ultimately, the person we started talking with didn't actually wind up participating, but still remains a valuable contact and potentially a key partner for the future. They may want a lower valuation as a kind of risk premium for investing in you. You just don't know.

Cap Table 90

Cap Table Cofounder Valuation .Net 90

Berkonomics

JANUARY 20, 2010

I’ve arrived at a significant number of companies that were looking for additional growth capital after a “friends and family” round, and had to “clean up” the cap table more than a few times over the years. Better yet, the valuation of your enterprise is often higher than if the same investment were taken from a professional investor.

Private Equity 69

Private Equity Valuation Cap Table Accredited Investor 69

The Next Web

OCTOBER 7, 2013

Cap tables sound intimidating. In a CTO Salary and Equity trends report by Safire Partners, it finds non-founder equity compensation to settle out below 2 percent. Overlooked here is the valuation of the specific startup along its growth trajectory. percent to 3 percent range for engineer #1s.

Engineer 129

Engineer Dilution Option Pool Vesting 129

venturehacks.com

SEPTEMBER 22, 2011

Offers from top-tier firms increase your valuation. Offers from top-tier firms increase your valuation. But overall, an offer from a top-tier firm increases your valuation. Top-tier firms try to avoid increasing your valuation when they make an offer. You have to pay market rates regardless of the equity equation.

Equity 40

Equity Cap Table Valuation RSS 40

David Teten

DECEMBER 12, 2017

(written by Philipp von dem Knesebeck , Managing Partner, Blue Future Partners (bluefp.com, @bluefutureteam ), and David Teten ). Based on this paper, Blue Future Partners and PEVCTech recently completed a large-scale survey to find out which tools are most commonly used by venture capital firms.

Early Stage 60

Early Stage Technical Review Software Review Venture Capital 60

Hunter Walker

DECEMBER 24, 2018

I strongly believe the detailed story of the company’s success is the founders’ one to tell if they choose to do so, but at the risk of excessive inside baseball, I’ll share my perspectives from the cap table. So founders, please don’t let lack of existing relationships deter you from reaching out to us.

Cap Table 96

Cap Table Seed Stage Acquisition Vertical 96

www.paulgraham.com

APRIL 28, 2010

Another concept we need to introduce now is valuation. I say "in theory" because in early stageinvesting, valuations are voodoo. As a company gets more established,its valuation gets closer to an actual market value. As a company gets more established,its valuation gets closer to an actual market value. Better how?

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

abovethecrowd.com

APRIL 20, 2016

One key to this population growth has been the remarkable ease of the Unicorn fundraising process: Pick a new valuation well above your last one, put together a presentation deck, solicit offers, and watch the hundreds of million of dollars flow into your bank account. By January of 2016, that number had ballooned to 229.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

venturehacks.com

OCTOBER 21, 2010

Use a hiring plan to justify a small option pool, increase your share price, and increase your effective valuation. Reading on, the term sheet states, “The $8 million pre-money valuation includes an option pool equal to 20% of the post-financing fully diluted capitalization.&# The option pool lowers your effective valuation.

Option Pool 68

Option Pool Pre-Money Valuation Dilution Warrant 68

Rob Go

FEBRUARY 24, 2014

Basically, this means that another VC invests at a higher valuation, making the early VC seem really smart and able to show unrealized gains. This tends to make LPs happy and make the lead partner look good among his or her colleagues. Most VC’s like having some leverage on their dollars. in mid 2013.

Cap Table 78

Cap Table Valuation Finance Institutional Investors 78

David Teten

MARCH 18, 2021

Valuation: $1M – $3M. Avataar Ventures invests exclusively in companies which fit these criteria: “$15 Million + in Annual Recurring Revenues; Strong Tech-Led B2B & SaaS Companies; Core Operations in India/ South East Asia; Open to Active Partnering.” By contrast, Right Side Capital has a very tight thesis : .

Technical Review 78

Technical Review Cofounder Venture Capital Deal Flow 78

Hunter Walker

AUGUST 1, 2017

Two things happened there: I found the perfect person to partner with: Nisha Dua. What we see is that more and more female founders want women on their cap table: A couple of founders have re-opened rounds for us; one even got a major investor to sell us secondary. Are you encouraged by recent discussions?

IPO 75

IPO Cap Table NDA Vietnam 75

Austin Startup

DECEMBER 10, 2017

We raised significant capital at a high valuation based on his credibility, and he certainly was entitled to call the shots on decisions like that. TechSquare Labs is already doing just that at scale for accomplished researchers out of Georgia Tech, and I’m looking forward to contributing.

Georgia 48

Georgia Startup Incubator Harvest 48

Haystack

DECEMBER 28, 2019

Before Labor Day, this company was barreling toward a fall IPO — eventually, it’s valuation was slashed over 70%, thousands of employees were shown the door, building owners wondered if they’d be holding defaulted leases, and the outgoing CEO walked away a multibillionaire.

China 146

China Startup Lock-up Period Cap Table 146