Both Sides of the Table

SEPTEMBER 28, 2014

Conversely if you’re burning $600,000 per month (yes, some companies do) then you only have 5 months of cash left. Valuation. I wanted to call out special attention to valuation in this debate. So a large part of your personal assessment on how much you can afford to burn also has to be your current valuation.

Burn Rate 383

Burn Rate Balance Sheet .Net Valuation 383

Both Sides of the Table

JUNE 28, 2018

How could Bird really be worth the reported $2 billion valuation that I read about in this press? While I promised not to comment on the exact valuation you can assume that it is very large and perhaps the fastest rise from zero to what some have called a “unicorn” valuation. Forget the valuation?—?I

San Francisco 256

San Francisco Valuation Technical Review Los Angeles 256

ReadWriteStart

JULY 15, 2020

New talk of capital efficiency is gratifying, but there was another lesson from pre-COVID-19 valuation struggles. Venture capitalists and early-stage investors have told all of us, founders are critical to a startup’s valuation. The conversation boils down further to whether the leaders of these companies can be trusted.

Valuation 91

Valuation South Carolina San Jose Balance Sheet 91

View from Seed

NOVEMBER 18, 2020

Every ask implicitly suggests a valuation range. Conversely, a series A with a $6M ask suggests a lower valuation. Because every ask suggests a valuation, make sure it is market appropriate. Conversely, a smaller fund that writes $5M checks will have a hard time figuring out how they are going to lead a $25M round.

Valuation 418

Valuation Founder Conversion Demand 418

The Startup Magazine

NOVEMBER 1, 2021

If you want to increase conversions and drive more traffic to your business website, teaming up with platforms like Groupon can be an excellent way to achieve them. Optimise Product Pages for Conversions. Lots of companies invest in affiliate marketing strategies and believe their affiliates will drive conversions on their own.

Affiliate 183

Affiliate Marketing Technical Review Software Review 183

ReadWriteStart

OCTOBER 7, 2010

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. That is debt financing that converts into equity at the Series A valuation once the price for that is set. (I Sub-$2 million pre-money, it is better to bootstrap.

Valuation 119

Valuation Silicon Valley Pre-Money Valuation Bootstrapping 119

Both Sides of the Table

JUNE 5, 2011

2: As expected at least one person accused me of writing this post because I want to see lower valuations. I have conversations with entrepreneurs and other VCs on a daily basis about fund raising, the prices of deals, how much companies should raise, etc. You can be pissed off, but I don’t set prices. That’s stupid.

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336

Both Sides of the Table

JULY 23, 2014

We are in a bubble (with so many private $1bn+ valuations). pre-money valuation you certainly would want to exercise your right to continue investing if you had prorata rights. 15 years ago we were at the peak of Internet hype with the launch of many over-capitalized businesses with a market size & opportunity was limited.

Technical Review 398

Technical Review Venture Capital Valuation Pre-Money Valuation 398

The Startup Magazine

OCTOBER 29, 2023

Essential Metrics for Comprehensive Customer Journey Analysis Conversion Rates Conversion Rates are fundamental metrics in evaluating the effectiveness of each touchpoint within the customer journey. By optimizing engagement levels, you not only improve the customer experience but also increase the likelihood of successful conversions.

Metrics 134

Metrics Customer Harvest Acquisition 134

VC Adventure

JUNE 14, 2022

But it certainly highlights the need for a deeper level of conversation between venture investors and their portfolio CEOs about where and how they can truly be helpful. I suspect some of this relates to expectation setting and how VC investors “pitch” themselves to prospective portfolio companies.

Technical Review 150

Technical Review Due Diligence Portfolio Venture Capital 150

Tim Keane

JANUARY 12, 2010

Term-sheets and Valuations: Thinking about Negotiations.   I’ve sat down with entrepreneurs and a copy of a term sheet guide I like [ “Term Sheets & Valuations - A Line by Line Look at the Intricacies of Venture Capital Term Sheets & Valuations ” by Alex Wilmerding, Aspatore Press.] The Valuation Question.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

YoungUpstarts

JANUARY 10, 2018

How do you find the balance between not too small to prove itself but not too big to have an off-putting valuation? Minimizing losses in the year before you begin shopping around for buyers will increase profit and help you get that higher valuation. Fact is, you just don’t know whether your business is ready to sell.

Valuation 145

Valuation Technical Review Exit Strategy Metrics 145

Both Sides of the Table

SEPTEMBER 10, 2021

I’m over-paying for every check I write into the VC ecosystem and valuations are being pushed up to absurd levels and many of these valuations and companies won’t hold in the long term. On the one hand, you’re over paying for every investment and valuations aren’t rational.

Pre-Money Valuation 471

Pre-Money Valuation Valuation Venture Capital Early Stage 471

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. Only you know.

Burn Rate 150

Burn Rate Cap Table Valuation Software Review 150

Hunter Walker

SEPTEMBER 3, 2023

Holiday weekend here in the US means links for you to read Playing Different (Stupider) Games The Other End Of The Valuation Stick [Kyle Harrison, Contrary Capital] – Kyle puts out a new essay (almost) every Saturday and I really enjoy his consistent and clear eyed POV on venture capital.

Technical Cofounder 79

Technical Cofounder Cofounder Coder Canada 79

Both Sides of the Table

NOVEMBER 10, 2021

And today, as the company announces their latest funding round of $125M at a $1B+ valuation , I’m still thrilled to back Density as they are growing massively with customers like Uber, Shopify, Delta, and Cisco, among many others. Quite simply, the data that Density provides? data that hasn’t been available until now?—?is

Valuation 249

Valuation Conversion Employee Customer 249

VC Cafe

APRIL 4, 2024

Despite being less than 2 years old, Mistral is now looking to raise funding at a $2 billion valuation in December 2023. As pre-seed investors, it’s never too early to have a conversation. Therefore addressing several shortcomings of their competitors. Please reach out and we will be happy to share our candid feedback.

Generative AI 78

Generative AI Artificial Inteligence Technical Review ChatGPT 78

Both Sides of the Table

MARCH 1, 2016

At the Upfront Summit in early February, we had a chance to have many off-the-record conversations with Limited Partners (LPs) who fund Venture Capital (VC) funds about their views of the market. LPs See The Over-Valuations and Don’t Like It. All isn’t completely rosy in the LP views of the venture industry.

Venture Capital 150

Venture Capital LP Silicon Valley Marketing 150

VC Cafe

JANUARY 27, 2021

In an effort to reduce miscommunications, this platform helps start a conversation by dropping a comment on anything seen on-screen, and sharing a private link to start a conversation – in the context of what is seen. Then there’s Bubbles , a chrome extension focusing on screen grab collaborations. “

Vertical 148

Vertical Video Technical Review Europe 148

Austin Startup

SEPTEMBER 10, 2017

TL;DR: Using a “tiered” valuation cap structure in a convertible note or SAFE can provide flexibility that bridges the gap between (i) what founders expect their company to be worth in the near future, and (ii) what investors are comfortable accepting now. Did you get a “good” valuation? What a valuation cap isn’t.

Valuation 48

Valuation Dilution Silicon Valley Seed Stage 48

Both Sides of the Table

FEBRUARY 12, 2019

was originally published in Both Sides of the Table on Medium, where people are continuing the conversation by highlighting and responding to this story. thus the rise of “pre seed” investing). If you want to download the full deck it is here. Why Has Seed Investing Declined? And What Does this Mean for the Future?

Venture Capital 328

Venture Capital Technical Review Seed Stage IPO 328

Feld Thoughts

JUNE 10, 2022

I like the quote she pulled out of me in our conversation. Brad Feld] says his “strong belief” that “just doing a clean resetting — at whatever the valuation so that everybody is aligned and dealing with reality — is much, much better for a company.” If you can do this cleanly, take the money.

Down Round 162

Down Round Ratchet Liquidation Preference Participating Preferred 162

Start Up Blog

MAY 28, 2020

Some people (not us) nod politely and move onto the next conversation. Uber has lost $38 billion since 2013 and yet still has a market valuation of around $60 billion. – Tesla $ valuation per car sold = $302k. – GM $ valuation per car = $5k. – Ford $ valuation per car sold = $17k.

Valuation 48

Valuation Technical Review Singapore India 48

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. Or is there a major disconnect between a portfolio’s valuations and the actual dollars returned to LPs? Both early- and late-stage startup valuations are currently elevated.

Valuation 319

Valuation Pre-Money Valuation Distribution Early Stage 319

Gust

OCTOBER 13, 2023

Depending on how the note is written and the amount and valuation of the equity (ie, stock) sale, the conversion may be either optional on the lender's part, or mandatory. A discount on the conversion means. The post What does a “discount” mean in a convertible note? appeared first on Gust.

Stock 91

Stock Valuation Equity Conversion 91

ithacaVC

NOVEMBER 14, 2014

I have written about startup valuations previously. If you are advising startup founders, I strongly suggest having them read all 4 of the posts to get the lay of the startup valuation land. Here is Walla’s post: I can’t tell you how many times I’ve had this conversation. Valuations of other companies like you.

Valuation 69

Valuation Startup Down Round Early Stage 69

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. Or is there a major disconnect between a portfolio’s valuations and the actual dollars returned to LPs? Both early- and late-stage startup valuations are currently elevated.

Valuation 295

Valuation Pre-Money Valuation Distribution Early Stage 295

Austin Startup

MARCH 22, 2021

In recent years we’ve seen mega-rounds of investment and sky-high valuations. billion Series D round giving the company a valuation of about $14 billion!* was originally published in Austin Startups on Medium, where people are continuing the conversation by highlighting and responding to this story. They raised a whopping $2.4

Software Review 100

Software Review San Francisco Valuation Stock 100

Startup Professionals Musings

MARCH 16, 2016

This term is currently applied to recent startups who profess a current valuation which exceeds $1 billion. Frothy startup valuations. How many of the terms defined above have you personally used in a conversation or explained in the context of your startup? Prime examples include Uber, Airbnb and Snapchat.

Software Review 120

Software Review Sweat Equity Accredited Investor Angel Investor 120

A Smart Bear: Startups and Marketing for Geeks

AUGUST 18, 2015

The current valuation of the company is based on continued growth in revenue and earnings, not erosion due to ankle-biters. In the big-boy and big-girl world of real, at-scale companies, valuation is about total future earnings. The big profitable revenue stream is the goose that’s laying the golden eggs. Not anymore.

Technical Review 120

Technical Review Valuation Flash Revenue 120

Up and Running

SEPTEMBER 19, 2017

That’s because obtaining a pre-money valuation for a concept level technology company in excess of $1 million is difficult, particularly for a startup founder without a proven track record. By contrast, obtaining a pre-money valuation of $5 million for a business with a new viable product and even very minimal sales is somewhat reasonable.

Private Equity 94

Private Equity Pre-Money Valuation Equity Startup 94

YoungUpstarts

OCTOBER 28, 2015

“And if you have a valuation cap; a higher cap is always better than a lower cap.” The primary terms for these types of transactions are the valuation cap and the conversion discount. ” The Cost of Financing. Debt also has a due date and interest rate to negotiate.

Convertible Security 100

Convertible Security IP Technical Review Software Review 100

Startup Professionals Musings

MARCH 22, 2020

Offering debt is better than offering direct equity, especially in early stages when you have no valuation for setting equity percentages. Many use a convertible loan note that may be converted into equity upon the closing of the first formal angel or VC round of financing, with a more realistic valuation.

Management 308

Management Cram Down Angel Investor Equity 308

Feld Thoughts

JULY 9, 2019

When I was in Boston a while ago (it was very cold, so it must have been January), I had a wide-ranging conversation with Eric Paley. One of our conversational threads was about how to value companies. One of our conversational threads was about how to value companies. Isn’t accounting fun?

Revenue 179

Revenue Valuation .Net IPO 179

Hearpreneur

JANUARY 22, 2023

29- Continued use of online market valuation tools Photo Credit: DJ Parker I have seen the use of apps and online market valuation tools intensify over the last few years and I think that will continue in 2023. Thanks to Paige Arnof-Fenn, Mavens & Moguls ! #29- Thanks to DJ Parker, Life in Hampton Roads, VA !

Artificial Inteligence 124

Artificial Inteligence Technical Review Entrepreneur Social Media 124

View from Seed

NOVEMBER 23, 2021

I was doing a virtual AMA with a terrific group of underrepresented founders from Visible Hands last week and the conversation turned a little personal. Conversely, if things are not going well, all those things (meaning, purpose, consequence) are under threat.

Startup 227

Startup United States Valuation Stock 227

Berkonomics

AUGUST 10, 2023

The last money has the first say – in valuation and in sometimes forcing draconian terms that require prior investors to contribute a proportional new investment to retain a semblance of their original rights and avoid dilution or worse yet, involuntary conversion to a lower class of stock. Draconian terms?

Liquidity Event 116

Liquidity Event Initial Public Offering Dividend Valuation 116