Both Sides of the Table

SEPTEMBER 18, 2014

Him: But when I raised my first round we didn’t know how to price the company. There were no metrics. How will you price the next round? Your A round? Him: On metrics. In finance they call it “terminal value” but the truth is the price is as arbitrary at your A round as it is at your seed round.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

crowdSPRING Blog

MAY 10, 2013

The critical metrics for each stage of your SaaS business | by Lars Lofrgren – [link]. The Damaging Psychology of Down Rounds | by Mark Suster – [link]. Hospital Prices No Longer Secret As New Data Reveals Bewildering System, Staggering Cost Differences – [link]. 10 Myths about Startups – [link].

Social Media 93

Social Media Small Business Design Media 93

Gust

SEPTEMBER 17, 2014

Him: But when I raised my first round we didn’t know how to price the company. There were no metrics. How will you price the next round? Your A round? Him: On metrics. In finance they call it “terminal value” but the truth is the price is as arbitrary at your A round as it is at your seed round.

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

Growthink Blog

MAY 23, 2011

Technical progress and market traction are much slower and cost a lot more than anticipated. Yes, you heard me right – multiple research studies, including from the Kauffman Foundation , have shown that when you remove a follow-on venture capital round from a founder or angel investor-funded company, that expected returns skyrocket.

Angel Investor 112

Angel Investor Venture Capital Sweat Equity Cram Down 112

Both Sides of the Table

SEPTEMBER 27, 2010

My wife worked at Google so while we had good income in Silicon Valley it’s hardly the life of luxury given the costs of housing. If either condition doesn’t hold it will be hard to do anything but a flat or down round. &# I was a founder once. I had two kids and a rental house.

Liquidity Event 308

Liquidity Event Silicon Valley Seed Stage Finance 308

David Teten

AUGUST 7, 2019

Likely signs of a Value investment: the company has challenges in filling out the round; the investors have more negotiating leverage than the founders during the closing process; the company has significantly better metrics (e.g. You could argue that when they were [raising] oversubscribed [VC rounds], Facebook, Google, Amazon, etc.,

Venture Capital 60

Venture Capital Valuation Stock NDA 60

abovethecrowd.com

APRIL 20, 2016

In Silicon Valley boardrooms, where “growth at all costs” had been the mantra for many years, people began to imagine a world where the cost of capital could rise dramatically, and profits could come back in vogue. Their own ego is also a factor – will a down round signal weakness? A down round is nothing.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40