Professor VC

JANUARY 17, 2008

I think the title of this post is a TV show, but fitting as there has been much debate in the venture community as to the whether angel investors are good or bad for entrepreneurs and VCs. He also said they typically only invest at a $1 million pre-money valuation or less. The last blogger in Silicon Valley.

Pre-Money Valuation 28

Pre-Money Valuation Angel Investor Angel Groups Valuation 28

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

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

Feld Thoughts

JULY 29, 2011

Through a series of conversations, Jane and Dick have come up with the idea to develop a social network tailored to the medical community. Jane felt comfortable with receiving 10% for $50k, but no less, so they agreed on a $450k pre money valuation of their startup.

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

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

Berkonomics

DECEMBER 19, 2013

Valuation and fund-raising : How did you arrive at your proposed pre-money valuation? Arthur Lipper has been a well-respected member of the international financial community since 1954. Metrics and management: What might be the first indication the company will not be able to achieve its goals and objectives?

Pre-Money Valuation 105

Pre-Money Valuation Liquidity Event Cofounder Valuation 105

dondodge.typepad.com

JANUARY 15, 2011

Community is more powerful than money or technology » August 11, 2007 How much equity for investors and employees? So they will give you a pre-money valuation somewhere around the amount you raise. Entrepreneurs face some pretty tough questions at a very early stage.

Equity 40

Equity Employee Dilution Valuation 40

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 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. post money valuation and a $1.35M pre money valuation.

Pre-Money Valuation 160

Pre-Money Valuation Post-Money Valuation Valuation Dilution 160

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.

Silicon Valley 159

Silicon Valley Lean Venture Capital Pre-Money Valuation 159