Pascal's View

JULY 9, 2017

This is a fundamental issue that does, indeed, boil down to understanding the post-money valuation of a company. At its core, this issue points to the lack of understanding about the importance of post-money valuation by both entrepreneurs and investors. But it is also a topic that many find esoteric and difficult to grasp.

Post-Money Valuation 49

Post-Money Valuation Valuation Cap Table Covenant 49

Gust

OCTOBER 12, 2011

During the summer of 2010, I developed a workshop, A New ACEF Valuation Workshop for Angels and Entrepreneurs. To provide some reference points, I surveyed thirteen angels groups in North American to determine their recent experience in negotiating the pre-money valuation of pre-revenue companies. Current Average. up slightly.

Angel Groups 125

Angel Groups Valuation Pre-Money Valuation St. Louis 125

Agile VC

SEPTEMBER 15, 2011

The very strongest companies can still likely get out if they really wanted, but may not command the valuations they hoped for in more bullish times. Or growth and sound economic policies in developed countries could return quickly. The second tier of companies probably have to wait whether they like it or not. Author howerl.

IPO 100

IPO Marketing Silicon Valley Technical Review 100

Both Sides of the Table

OCTOBER 21, 2009

We meet to discuss trends in the industry and to find ways to work together to help with SoCal deal syndication – somethings that happens automatically on Sand Hill Road in NorCal due to proximity. They have data from surveys they did with corporate development officers (e.g. We feature a prominent speaker at every event.

Technical Review 241

Technical Review IPO Southern California Venture Capital 241

thebarefootvc

MAY 8, 2012

The best VCs are the ones that balance their optimism, vision and enthusiasm for startups with realism based on very real constraints (the primary one being his/her own time, but also includes market development and exit timing). As an entrepreneur at heart, I often innately grasp the potential of entrepreneurs and ideas that I meet with.

Venture Capital 78

Venture Capital Syndicate Syndication Bandwidth 78

Agile VC

MAY 26, 2011

I certainly bear no ill will to the various firms that ultimately passed on our fundraise… as a seed stage VC myself now I can appreciate how hard it is evaluating companies at the earliest stages of development. round which closed in November 2003, and the pre-money valuation between $10 million and $15 million. It was a $4.7M

Term Sheet 178

Term Sheet Silicon Valley Technical Review Social Network 178

Gust

JULY 12, 2012

On Wednesday, April 18th, I gave a keynote speech on US Startup Valuation Trends for the 1st Irish Angel Meetup. On May 2nd and 3rd, I led workshops for about thirty Estonian investors on syndication, due diligence, valuation and the post-investment relationship with entrepreneurs.

Community 121

Community Estonia Ireland Finland 121

David Teten

JANUARY 19, 2021

Yes, via conversion rights at a valuation cap. Yes, via conversion rights at a valuation cap. Coinvestors: Flexible VC terms have not been standardized, which may make the investment harder to syndicate. which they co-developed with Fenwick & West. . Flexible VC: Compensation-based. Flexible VC: Blended Return.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Gust

OCTOBER 20, 2011

In 2011, the valuation of pre-revenue, start-up companies is typically in the range of $1.5–$2.5 Scorecard Valuation Methodology. This method compares the target company to typical angel-funded startup ventures and adjusts the average valuation of recently funded companies in the region to establish a pre-money valuation of the target.

Valuation 146

Valuation Pre-Money Valuation Intellectual Property Technical Review 146

David Teten

JULY 23, 2019

See How VCs structure a syndicate and recruit coinvestors for more on this. Note the pitch should explain what they actually do preferably using the Mad Libs format : “My company, [NAME], is developing [A DEFINED OFFERING], to help [DEFINED AUDIENCE], [SOLVE A PROBLEM], with [SECRET SAUCE].”. – Headquarters city .

Portfolio 60

Portfolio Elevator Pitch Syndicate Syndication 60

View from Seed

APRIL 30, 2015

” Venture debt gives you those options, and particularly for companies that wind up doing well, then on your same cash-out date, you’d likely have achieved a better milestone thanks to fueling your spend, which would translate into a better valuation. NVV: Let’s talk about the seed stage specifically.

Term Sheet 120

Term Sheet Equity Startup Seed Stage 120

David Teten

SEPTEMBER 23, 2017

produced this analysis of engineering representation within VC firms: Selected VCs with Highest Representation of Developers in Workforce. HOF Capital is currently developing a proprietary sourcing tool to automatically filter for potential deal prospects that fit our criteria. VC Firm. $ Tech % of workforce. Google Ventures (GV).

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

Feld Thoughts

AUGUST 10, 2010

In this case neither Niel (nor I) had any interest in creating a traditional syndicate to fund the company. We did a second financing by ourselves at an increased valuation – this was the “Series B&#. The meat of the funding story follows: “Of course coming up with the idea is the easy part.

Syndicate 120

Syndicate Syndication Angel Financing Finance 120

Agile VC

MAY 21, 2012

ad-tech, analytics, development platforms, etc) the list is slightly different. There’s also a meaningful cohort of newly public companies that now have valuations of $1B+ who could seriously contemplate an acquisition of $100M+ for stock or cash… Yelp, Zillow, Tripadvisor, Jive Software, Splunk, and others.

Acquisition 162

Acquisition Silicon Valley B2B Seed Stage 162

Professor VC

APRIL 1, 2010

One comment made by Jason was that angels tend to be less sensitive than VCs on valuation and can potentially make it difficult to get a venture financing done at acceptable valuation. We are typically looking at either smaller exits or require a lower valuation to get a reasonable step-up to a venture round.

Term Sheet 32

Term Sheet Angel Investor San Jose Venture Capital 32

View from Seed

JUNE 30, 2015

Or maybe your market hasn’t quite developed as quickly as you’d hoped. You may actually need to raise a few financing rounds just to get to a series A, so think about the syndicate you are constructing (will they be loyal to you?), Some still happen fast. But some take a windy road.

Seed Stage 120

Seed Stage Syndicate Syndication Dilution 120

Professor VC

JANUARY 17, 2008

One of my comments was that we would likely see more institutionalization of angel groups and syndication of deals among groups. Another comment which probably deserves more discussion is around valuation. He also said they typically only invest at a $1 million pre-money valuation or less. My facebook can beat up your facebook.

Pre-Money Valuation 28

Pre-Money Valuation Angel Investor Angel Groups Valuation 28

David Teten

DECEMBER 3, 2019

This provides us more time to develop meaningful relationships with prospects and customers. Tribe Capital has developed A Quantitative Approach to Product Market Fit. . From a startup’s point of view, Abaca helps a company identify in a standardized way their level of development. 3) Raise capital. 7) Negotiate .

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Both Sides of the Table

AUGUST 1, 2010

Like Brad Feld I’m syndication agnostic but I have a slight preference toward working with others. The obvious positive is that there is a lot less time spent raising money and more time spent on building the business at a critical stage in the company’s development. This is the nature of compromise.

Post-Money Valuation 298

Post-Money Valuation Term Sheet Warrant Partner 298

View from Seed

JANUARY 28, 2016

This is the best time to fundraise because that’s when you are able to command a meaningfully higher valuation for your next round to minimize your own dilution. Third, we look for founders that are customer obsessed, and are inclined to do the careful work of customer development that makes the pre-seed really productive.

Cofounder 120

Cofounder Finance Founder Syndicate 120

Austin Startup

DECEMBER 20, 2010

He’s joined by Brian Dainton and Eric Falcao, two seasoned Ruby developers who will hold the titles of Director of Products, and Director of Platform. I’ve been exploring ideas to work with these guys for a while because they are incredible developers. Chief Content Officer for ad:tech. That’s exactly the point.

Curation 118

Curation Austin Cofounder Ruby 118

Agile VC

FEBRUARY 2, 2012

The next chunk comes from Facebook’s platform, in essence “taxing” the revenues of app developers like Zynga, which represents 15% of revenue. That’s actually a combination of Payments (the 30% share Facebook takes from app developer revenues) and advertising spend for ads Zynga buys on FB to acquire customers.

IPO 100

IPO South Korea Venezuela Revenue 100

Tim Keane

APRIL 12, 2006

What development stage is your primary business focus? valuation than the previous round. If the investors ideal size is smaller than your need, you ought to ask about syndication. If they don’t like to syndicate, or don’t have a track record of doing it, you will want to consider your options. past round one.

Entrepreneur 60

Entrepreneur Valuation Sweat Equity Common Stock 60

mashable.com

MARCH 7, 2011

Billion View Comments How HTML5 Is Aiding in Cross-Platform Development February 22, 2011 by Christina Warren View Comments email share email share The Mobile App Trends Series is sponsored by Sourcebits , a leading product developer for mobile platforms. Follow Sourcebits on Twitter for recent news and updates.

Developer 93

Developer HTML API Ruby 93

Both Sides of the Table

NOVEMBER 8, 2010

Restricted Supply: We love the content that is produced by the companies that are the primary suppliers to hulu: Modern Family, The Office, The Simpsons or even classics such as Arrested Development. I would take a lower valuation in exchange for bringing in world-class investors that can create the right structure for future success.

Video 292

Video Technical Review Advertising Distribution 292

www.paulgraham.com

APRIL 28, 2010

Then you can gradually transformyourself from a consulting company into a product company, and haveyour clients pay your development expenses. An advantage of consulting, as a way to develop a product, is thatyou know youre making something at least one customer wants. Another concept we need to introduce now is valuation.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

Duct Tape Marketing

DECEMBER 14, 2017

He’s been a developer/hacker for over 15 years, and he sold his first startup, VinSolutions for $150 million. I grew up working in flea markets, and my family was entrepreneurial, not in the tech side of things or anything, but in different ways, and was always working side projects and jobs for people as a developer.

Kansas City 40

Kansas City CTO Hire Las Vegas Software Developers 40

Rob Go

JANUARY 28, 2016

This is the best time to fundraise because that’s when you are able to command a meaningfully higher valuation for your next round to minimize your own dilution. Third, we look for founders that are customer obsessed, and are inclined to do the careful work of customer development that makes the pre-seed really productive.

Cofounder 28

Cofounder Finance Founder Syndicate 28

Professor VC

JUNE 20, 2011

We managed to pull together an angel syndicate and close $450K on 9/30 after working the phones the last few days and anxiously waiting for signature pages to show up on the fax machine and wire confirms to hit the bank account. offering to invest $75K if we could find another $250K by September 30, 2005.

San Jose 28

San Jose Angel Investor Term Sheet Venture Capital 28

Feld Thoughts

JULY 14, 2015

Assuming equity is raised at or above that cap, the total dilution, before the new money, is 16.6% (equivalent to an equity financing of $1m at a $6m post money valuation. The term sheet converts all the convertible debt into a post-money valuation of $100, essentially making the convertible debt worthless. Sure – it happens.

Recapitalization 70

Recapitalization Pre-Money Valuation Post-Money Valuation Angel Investor 70

Austin Startup

AUGUST 1, 2017

This is most clearly highlighted in the “unicorn” boom we all saw over the past few years, where founders raised very large rounds, with terms very onerous to the underlying common stock, hoping they could eventually justify billion dollar valuations to skeptical acquirers or public market investors. Angels/Seed Funds v.

Liquidation Preference 48

Liquidation Preference Common Stock Valuation Silicon Valley 48

Professor VC

JUNE 6, 2016

When AngelList first launched syndicates a few years ago, I was very skeptical of the idea of angels taking carry on my investment. So what changed and why I am now launching a syndicate? In looking at how syndicates have developed, there have been a lot of positives for both angels and entrepreneurs. I got over it.

Syndicate 28

Syndicate Syndication Cap Table Ratchet 28

Scott Edward Walker

NOVEMBER 26, 2017

From a practical perspective, this means getting actively involved in your local tech community, regularly attending industry events and conferences, writing blog posts/articles, integrating yourself into communities on social networks and, of course, doing outstanding work as an employee (to develop a great reputation).

Term Sheet 63

Term Sheet San Francisco Founder Investment Bankers 63

Feld Thoughts

AUGUST 1, 2018

We are syndication agnostic, being indifferent between investing by ourselves or with co-investors – especially our partner funds – where we mostly have long and successful relationships. We refer to B and C rounds as early growth – essentially financings with valuations between $50m and $300m pre-money.

Syndicate 17

Syndicate Syndication IRR Canada 17