Both Sides of the Table

SEPTEMBER 18, 2014

It’s like we need a finance 101 course for entrepreneurs. Revenue multiple? Me: There is no rational explanation for valuations of A round companies by ANY objective financial measure. Me: There is no rational explanation for valuations of A round companies by ANY objective financial measure. There were no metrics.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Lightspeed Venture Partners

OCTOBER 7, 2012

They won a design award at a trade show, but have no revenue and no orders. As he said, “Great innovations solve problems or reduce costs. As Cuban pointed out, this is a “down round” Zomm is seeking $2M for 10% of the company, implying an $18M pre money valuation today.

Technical Review 110

Technical Review Technical Cofounder Valuation Pre-Money Valuation 110

Gust

SEPTEMBER 17, 2014

It’s like we need a finance 101 course for entrepreneurs. Revenue multiple? Me: There is no rational explanation for valuations of A round companies by ANY objective financial measure. Me: There is no rational explanation for valuations of A round companies by ANY objective financial measure. There were no metrics.

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

Lightspeed Venture Partners

SEPTEMBER 23, 2012

The entrepreneurs had made $150k in revenue running classes for four months at a gym in New York, selling out the classes at $35/class. post money valuation. Mark Cuban offered $300k for 33% of the company, implying a $900k post money valuation. implying a $600k post money valuation.

Pre-Money Valuation 164

Pre-Money Valuation Post-Money Valuation Valuation Dilution 164