Both Sides of the Table

JUNE 30, 2016

conversation literally every week with startups. So the temptation would be to ask for $5 million because that implies a $20 million pre-money valuation if you’re able to only give away 20% or a $15 million pre-money valuation of investors require 25%. I have this “How much should I raise?”

Pre-Money Valuation 292

Pre-Money Valuation Valuation Early Stage Startup 292

Both Sides of the Table

JULY 23, 2014

pre-money valuation you certainly would want to exercise your right to continue investing if you had prorata rights. Because this is all VCs do and if we intend to work with all of our fellow VCs and entrepreneurs when the rain ends and the sun shines again our reputations matter greatly.

Technical Review 398

Technical Review Venture Capital Valuation Pre-Money Valuation 398

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.). You blog both because you enjoy it and because it helps build your online reputation. I comment and I build awareness & reputation. It’s true. I rarely only read the post.

Silicon Valley 301

Silicon Valley Pre-Money Valuation Technical Review Software Review 301

YoungUpstarts

SEPTEMBER 4, 2017

For startup founders and CEO’s it’s also just as common to see them place too much focus on the amount of money raised, and the pre-money valuation, rather than the value that each investor can bring to the table. Creating a reputation as an investor who truly backs their founders can often make you an investor of choice.

Pre-Money Valuation 187

Pre-Money Valuation Seed Stage IP Deal Flow 187

Both Sides of the Table

APRIL 14, 2010

Reputation – Equally, the investor might not be worried about squeezing out your existing VC, per se, but doesn’t want to develop a reputation as a VC with an edge. I wouldn’t work in this business long if I had a reputation for screwing over other investors to get a deal. Reputation. So what happens?

Venture Capital 289

Venture Capital Liquidation Preference Common Stock Pre-Money Valuation 289

Both Sides of the Table

SEPTEMBER 5, 2012

As in, “your money into my company will convert at a 15-20% discount to the next round of capital I raise with a maximum price of $8 million pre-money valuation (or whatever the cap was).” I recommend that startups agree the “conversion price” at maturity. What happens at maturity?

Ratchet 354

Ratchet Liquidation Preference Equity Stock 354