Agile VC

APRIL 17, 2011

AGILEVC My idle thoughts on tech startups. Last week ZipCar began trading and has a market cap of about $1 billion. At the end of the day Kayak’s playing a key role in the online travel process, but it appears more of the revenue comes from filling top of the conversion funnel rather than the middle or bottom of it.

Pre-Money Valuation 113

Pre-Money Valuation Liquidation Preference Dividend Common Stock 113

Both Sides of the Table

FEBRUARY 15, 2016

There is much talk these days that startup valuations have decreased and may continue to do so and that the amount of time it takes to fund raise may take longer. The earlier the round, the less capital you need and the more reasonable your valuation the less time that is needed generally to raise capital.

Burn Rate 150

Burn Rate Cap Table Valuation Software Review 150

Both Sides of the Table

AUGUST 23, 2010

What I notice is that people further the conversation, talk with each other, network, try to get noticed (linking to their websites, etc.). Answers OnStartups- Shortly after I started blogging I noticed a website called “ Answers on Startups ,&# which I instantly loved and spent a bunch of time on. It’s true. No, really.

Silicon Valley 301

Silicon Valley Pre-Money Valuation Technical Review Software Review 301

Austin Startup

JUNE 21, 2018

Our pre-money valuation for the seed round is 2 trillion dollars.” Transaction costs, while not always monetary, affect our willingness to buy, sell, and engage in a market. For example, bitcoin makes it possible to transfer money between parties without fees, or oversight from your bank, government, etc.

Securities and Exchange Commission 61

Securities and Exchange Commission SEC Pre-Money Valuation Security 61

View from Seed

OCTOBER 21, 2014

As the seed-stage startup fundraise process has received more transparency in recent years, ranging from published advice on how to raise seed capital to increased availability through AngelList, Funders Club, and various accelerator programs, I’ve noticed another trend emerging. Lower-Than-Market Value. Market Value.

Valuation 336

Valuation Founder Seed Stage Angel Investor 336

View from Seed

SEPTEMBER 14, 2021

This post is inspired by some of the earliest conversations I have had with the team here at NextView and since the beginning of my VC journey. Will Quist did a great job of explaining this market rhetoric in this thread. So, on one hand, the market see ms like a total frenzy these days. Source: WaitButWhy. during this time.

Valuation 319

Valuation Pre-Money Valuation Distribution Early Stage 319

View from Seed

SEPTEMBER 14, 2021

This post is inspired by some of the earliest conversations I have had with the team here at NextView and since the beginning of my VC journey. Will Quist did a great job of explaining this market rhetoric in this thread. So, on one hand, the market see ms like a total frenzy these days. Source: WaitButWhy. during this time.

Valuation 295

Valuation Pre-Money Valuation Distribution Early Stage 295

ReadWriteStart

OCTOBER 7, 2010

So at any point, if you are trying to raise money, and you are hearing from investors that you are too early and have too little validation, it may be a good thing. As a thumb rule, try to get enough validation so that you can get to at least a $2 million pre-money valuation before raising equity capital. Photo by lco.

Valuation 119

Valuation Silicon Valley Pre-Money Valuation Bootstrapping 119

Agile VC

MAY 26, 2011

AGILEVC My idle thoughts on tech startups. The market size for online advertising, e-commerce, and web premium services are 1/10th to 1/3rd the size they are today. To give you a sense, for 2002 the entire US online ad market was $6B and had shrunk year over year (it was $25B+ for 2010). How to Evaluate Firms for a Seed VC.

Term Sheet 178

Term Sheet Silicon Valley Technical Review Social Network 178

YoungUpstarts

SEPTEMBER 4, 2017

Investing in startups is a lot more than just buying “stock” in a company. For investors who have come to the table with a history investing in publicly listed companies or the property market, it’s easy to think that backing startups is largely a “set and forget” strategy. In addition to that very few startups only raise once.

Pre-Money Valuation 187

Pre-Money Valuation Seed Stage IP Deal Flow 187

Tim Keane

JANUARY 12, 2010

Startups and angels: Along the way to success. Bottom Up Market Sizing » January 12, 2010. Term-sheets and Valuations: Thinking about Negotiations.   Most often, investors who are interested in a company raise this issue first to measure the company’s response to a market value offer. times at 5 years and 11.39

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Both Sides of the Table

FEBRUARY 17, 2011

This conversation seems to come up very frequently these days both with portfolio companies and with entrepreneurs just looking for mentorship. I’m a very big believer in the “Lean Startup&# principles as espoused by Steve Blank and Eric Ries. You’re offered a $9 million pre-money to raise $3 million (e.g.

Pre-Money Valuation 303

Pre-Money Valuation Dilution Valuation PR 303

The Startup Lawyer

FEBRUARY 4, 2011

Great news — your startup just got accepted to an incubator! But before your startup signs up and cashes that $[XX,000] check, your startup’s co-founders should sit down and evaluate the incubator’s offer. Pre-money valuations startups receive from incubators are typically low…really low.

Incubator 105

Incubator Pre-Money Valuation Option Pool Advisory Board 105

Both Sides of the Table

FEBRUARY 4, 2016

” There are a lot of data points that one can observer to get a sense of the venture capital markets – both LP fundings into venture and VC financings of startups. They point to some widely known facts: financings & valuations are up massively over the past 7 years and non-VC money has entered the system.

LP 150

LP Valuation Burn Rate Pre-Money Valuation 150

View from Seed

SEPTEMBER 14, 2021

This post is inspired by some of the earliest conversations I have had with the team here at NextView and since the beginning of my VC journey. Will Quist did a great job of explaining this market rhetoric in this thread. So, on one hand, the market see ms like a total frenzy these days. Source: WaitButWhy. during this time.

Valuation 156

Valuation Pre-Money Valuation Distribution Early Stage 156

Both Sides of the Table

MAY 30, 2018

VC firms see thousands of deals and have a refined sense of how the market is valuing deals because they get price signals across all of these deals. I thought I’d write a post about how to talk about valuation at a startup and give you some sense of what might be on the mind of the person considering funding you. After all?—?we

Valuation 324

Valuation Post-Money Valuation Pre-Money Valuation Cofounder 324

Early Growth Financial Services

OCTOBER 23, 2014

In case you missed our recent webinar, we featured panelists Lucas Nelson, Principal, Gotham VC; Marlon Nichols, Director, Intel Capital; Alan Wink, Director of Capital Markets for EisnerAmper LLP; and Sirk Roh, COO for Early Growth Financial Services. Median pre-money valuations have increased by 43% so far in 2014 compared to 2013.

Pre-Money Valuation 59

Pre-Money Valuation Equity Valuation Startup 59

Genuine VC

JULY 30, 2012

By communicating pricing expectations with potential lead investors, I mean sharing either an “ask” or even stated floor for the pre-money valuation of the company (with a priced preferred round) or explicitly stating a valuation cap (for convertible note round). Above market.

Valuation 136

Valuation Pre-Money Valuation Angel Investor Syndicate 136

K9 Ventures

MARCH 23, 2011

Obviously, both the founders and the note holders have the common objective of getting the company funded; but assuming the company is fundable, there is a basic misalignment of incentives when it comes to valuation. The typical fix for this problem is to put in a cap in the note for the pre-money price for conversion.

Pre-Money Valuation 132

Pre-Money Valuation Valuation Equity Liquidation Preference 132

Both Sides of the Table

SEPTEMBER 5, 2012

When convertible debt first started being introduced as a “faster, cheaper way to get startups funded” they didn’t have pricing built into them. What investor would put money into a company and then agree a price later based on success? I recommend that startups agree the “conversion price” at maturity.

Ratchet 354

Ratchet Liquidation Preference Equity Stock 354

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. Intermix had acquired their previous online marketing startup, ResponseBase, and they remained a cohesive group. Intermix and its advisors weren’t fools.

Valuation 98

Valuation Pre-Money Valuation Merger Vesting 98

Both Sides of the Table

APRIL 14, 2010

Most people don’t want to go through the brain damage to convince seller one that the market has changed. So on deals where I really like the entrepreneur (but don’t plan to fund) I normally offer the (unsolicited, I know) advice to “clean your shit up first.&# Go have the hard conversations. Buy the second home.

Venture Capital 289

Venture Capital Liquidation Preference Common Stock Pre-Money Valuation 289

venturehacks.com

OCTOBER 21, 2010

Venture Hacks Good advice for startups. SUPPORTED BY Products Archives @venturehacks Books AngelList About RSS The Option Pool Shuffle by Nivi on April 10th, 2007 “Follow the money card!&# – The Inside Man, Three-Card Shuffle Summary: Don’t let your investors determine the size of the option pool for you.

Option Pool 68

Option Pool Pre-Money Valuation Dilution Warrant 68

Scott Edward Walker

APRIL 9, 2012

Venture capital funds, seed funds, super angels, angel groups, incubators, and “friends and family” are all playing the seed financing game and investing early in startups in an attempt to land the next Facebook. ii) what happens if the maturity date is reached prior to the note’s conversion to equity? price the round).

Preferred Stock 87

Preferred Stock Finance Common Stock Liquidation Preference 87

Professor VC

FEBRUARY 12, 2015

In the episode, Kristy Kruger talks about picturing unicorns roaming the planes in Africa as a kid and being at a party many years later when the topic of conversation turned to endangered species: It was about a group of five to seven people, kind of standing around the keg, just talking. or a market cap of $800M.

Las Vegas 28

Las Vegas IPO Pre-Money Valuation Valuation 28

Both Sides of the Table

FEBRUARY 25, 2010

million at a $15 million pre-money valuation. We had people hearing through the grapevine that we were about to raise money and new investors started calling us to get in on the deal. If you remember your history the market crashed the next week. Many companies that were in the process of raising money did not.

Technical Review 301

Technical Review Term Sheet Due Diligence Venture Capital 301