Berkonomics

SEPTEMBER 27, 2018

Over a million of these gamers clicked to the company’s game web site each month for new information and to form an early Internet game community. The company made little effort to charge for the software or community. Within three months, we easily obtained $3 million of investment at a pre-money valuation of $30 million.

Pre-Money Valuation 48

Pre-Money Valuation Sales Liquidity Event Valuation 48

Gust

NOVEMBER 4, 2011

Entrepreneurs and investors who have spent any time dealing with convertible debt seed financing transactions are likely to have encountered the subject of valuation caps. The cap is irrelevant if the next equity financing is at a valuation below the cap amount.) was spun out, and the valuation was set by that financing round.

Valuation 98

Valuation Pre-Money Valuation Merger Vesting 98

Feld Thoughts

JULY 29, 2011

Finance Friday’s gets off the ground with today’s post by introducing you to an imaginary startup, the entrepreneurs that we’ll being following throughout the series, and their first challenges: splitting up the founders’ equity and addressing the case where one of the founders provides the initial seed capital for the business.

Equity 137

Equity Finance Pre-Money Valuation Denver 137

Berkonomics

SEPTEMBER 17, 2011

Over a million of these came to the company’s game web site each month for new information and to form an early Internet game community. The company made little effort to charge for the software or community. Within three months, we easily obtained $3 million of investment at a pre-money valuation of $30 million.

Liquidity Event 59

Liquidity Event Pre-Money Valuation Sales Valuation 59

dondodge.typepad.com

JANUARY 15, 2011

Community is more powerful than money or technology » August 11, 2007 How much equity for investors and employees? Entrepreneurs face some pretty tough questions at a very early stage. Should I take Angel or VC money? How much money should I raise? Talk to other entrepreneurs - These are tough questions.

Equity 40

Equity Employee Dilution Valuation 40

Berkonomics

DECEMBER 19, 2013

In the process of raising funds to create and develop a business, entrepreneurs make many statements to those they seek to attract as investors. Valuation and fund-raising : How did you arrive at your proposed pre-money valuation? Finding your ideal niche Raising money' By: Arthur Lipper.

Pre-Money Valuation 105

Pre-Money Valuation Liquidity Event Cofounder Valuation 105

David Teten

NOVEMBER 15, 2013

I have frequently heard the expression from other investors, “We can put a lot of money to work here.” This is the psychology that drives VCs to load up a company with more capital, rationalizing that $5m at a $20m pre-money valuation is little different than $10m at a $40m pre-money valuation.

Management 114

Management Pre-Money Valuation Venture Capital New Hampshire 114

This is going to be BIG.

SEPTEMBER 7, 2012

If you're investing at pre-money valuations in the low to mid single digits, then how much worse can the next round even get? If I invest at a 4 pre and the next round investor says, "I'll do this, but only at a 2 pre," then we're already effed and something went wrong. Down from what?

Later Stage 99

Later Stage Down Round Pre-Money Valuation Early Stage 99

Lightspeed Venture Partners

SEPTEMBER 23, 2012

The entrepreneurs had made $150k in revenue running classes for four months at a gym in New York, selling out the classes at $35/class. The right number to focus on is pre money valuation as that is how an investor is valuing the company before the investment. Post money valuation = Pre money valuation + Investment.

Pre-Money Valuation 164

Pre-Money Valuation Post-Money Valuation Valuation Dilution 164

Startup Lessons Learned

JUNE 19, 2019

So the venture process was all about trying to figure out whether or not people could deliver what they said they could, and you typically invested as early as possible at a $5 million pre-money valuation, hoping the company would be worth $500 million, in which case you'd make 20 to 30 times your money. Most hedge.

Silicon Valley 159

Silicon Valley Lean Venture Capital Pre-Money Valuation 159