View from Seed

AUGUST 17, 2021

It’s by far the longest time I’ve spent working on any one thing, and I feel very blessed to have been able to work with my partners, colleagues, founders, and collaborators. My partners will tell you that I am an incredibly impatient person. Effective post money is the effective valuation of an investor’s dollars at any one time.

IRR 206

IRR Dilution Founder Portfolio 206

Both Sides of the Table

JULY 23, 2014

We are in a bubble (with so many private $1bn+ valuations). Limited Partners or LPs (the people who invest into VC funds) have taken notice as 2014 is by all accounts the busiest year for LPs since the Great Recession began. Where are we today? ” Stated simply – if you seed funded Uber at $4.5m

Technical Review 398

Technical Review Venture Capital Valuation Pre-Money Valuation 398

YoungUpstarts

NOVEMBER 20, 2019

by Lu Zhang, founder and managing partner of Fusion Fund. They want to see that you have some unique advantage that differentiates your company from others in your industry, and they’d prefer that you have some experience in that industry, which gives you legitimate insight into the problem you’re attempting to solve.

Technical Review 140

Technical Review Due Diligence Early Stage Differentiation 140

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

ReadWriteStart

JANUARY 13, 2024

Startups in the cybersecurity sector are facing a daunting market environment , contending with decreased valuations and increasing pressure to sell while competing for vital funding and collaborations. This collaborative environment plays a crucial role in staying ahead of cyber criminals to protect valuable data and systems.

Down Round 154

Down Round Marketing Artificial Inteligence Startup 154

Startup Professionals Musings

JUNE 26, 2013

It’s higher risk, but higher return, to pick the big winners early, before Angels have set unreasonable valuations and restrictive terms. Being “lifecycle investment partners” has a downside. VCs are finding that they don’t need the “large” funds of $100M to $500M to support a portfolio, if they focus on early-stage startups.

Angel Investor 231

Angel Investor Entrepreneur Early Stage Silicon Valley 231

View from Seed

AUGUST 17, 2021

It’s by far the longest time I’ve spent working on any one thing, and I feel very blessed to have been able to work with my partners, colleagues, founders, and collaborators. My partners will tell you that I am an incredibly impatient person. Effective post money is the effective valuation of an investor’s dollars at any one time.

IRR 156

IRR Dilution Founder Portfolio 156

View from Seed

AUGUST 17, 2021

It’s by far the longest time I’ve spent working on any one thing, and I feel very blessed to have been able to work with my partners, colleagues, founders, and collaborators. My partners will tell you that I am an incredibly impatient person. Effective post money is the effective valuation of an investor’s dollars at any one time.

IRR 136

IRR Dilution Founder Portfolio 136

Startup Professionals Musings

AUGUST 24, 2016

The next default of waiting until later is equally bad, since partners who bow out early will still expect an equal share of that first billion you make later. Investors may not be called co-founders, but they always get equity, commensurate with their share of the total costs anticipated, or share of the current valuation.

Equity 120

Equity Cofounder Technical Cofounder Intellectual Property 120

Startup Professionals Musings

SEPTEMBER 9, 2010

It’s higher risk, but higher return, to pick the big winners early, before angels have set unreasonable valuations and restrictive terms. Being “lifecycle investment partners” has a downside. VCs are finding that they don’t need the “large” funds of $100M to $500M to support a portfolio, if they focus on early-stage startups.

Technical Review 215

Technical Review Early Stage Venture Capital Startup 215

Both Sides of the Table

FEBRUARY 9, 2014

You need a set of innate skills that differentiate you from the thousands of others who set out on your similar journey. My partner Steven Dietz is an auto enthusiast and more than just an admirer of amazing cars he has worked around the auto industry for 20 years and backed a couple of billion-dollar startups in the category.

Video 373

Video Valuation Differentiation Distribution 373

VC Cafe

MAY 29, 2022

Additionally, given the valuation entry points, the return upside remains quite substantial regardless of macro conditions. Beyond growth momentum and compelling KPIs, this is where investors will search for true strategic differentiation and a path to profitability. The key messages: “This is not a time to panic.

Venture Capital 183

Venture Capital Early Stage Valuation Startup 183

The Equity Kicker

JANUARY 10, 2020

See below for a good description of what we like to see in deals at Forward Partners and what makes us different from other VCs. An interview with Nic Brisbourne, Forward Partners. Maybe they’ll pivot to something great eventually, but in the interim period, the valuation goes sideways – and that’s not a good place for a VC to be.

Partner 68

Partner Early Stage Portfolio Metrics 68

Both Sides of the Table

JANUARY 22, 2014

Of partner? Smart is simply not a differentiator. I’ve watched VCs help with valuation support (spreadsheets, comps) on next round financing, participate in M&A meetings, interview senior job candidates – even help terminate tricky senior hires. Picking a VC is hard. Reputation of firm?

Portfolio 364

Portfolio Chicago Sales Incubator 364

View from Seed

JANUARY 11, 2021

Kent Bennett from Bessemer Venture Partners spoke to this initial slow down: “ We couldn’t do anything until we understood the new normal. Despite the sustained climate of uncertainty, valuations continued to climb and VC exit values reached their second highest total ever in Q3. billion in 148 funds for the first half of 2020.

Venture Capital 352

Venture Capital Cofounder Early Stage Seed Stage 352

Both Sides of the Table

AUGUST 14, 2009

Differentiate. And just like with VC’s – it is as much the partner your working wit as the group more broadly. If you’re three s -hot kids from Stanford, Caltech or MIT you might be able to push valuation higher. If you raise $250k at a $750k valuation the same goes. Stand out from the crowd.

Silicon Valley 291

Silicon Valley Ireland Technical Review Valuation 291

Steve Blank

FEBRUARY 10, 2016

If you’re a venture capitalist … you have limited partners that give you money to invest on their behalf, and you’re responsible for giving them outsize returns. As an entrepreneur, you’re always fighting that external war whether that’s with partners or with investors. Nayeem : (Nods.) You have your team.

Silicon Valley 120

Silicon Valley Ohio Columbus Entrepreneur 120

Both Sides of the Table

APRIL 27, 2014

I guess if you’re in high-volume, low-differentiation mode perhaps this is efficient for you. If we got an offer to raise $25 million to grow would she take it or be too worried about exit price, dilution, valuation expectations, etc. Inbound is seldom differentiated dealflow. Don’t even get me started on Demo Days.

Cofounder 374

Cofounder Syndicate Syndication Early Stage 374

thebarefootvc

MAY 8, 2012

It is the human capital involved, both internally with company teams and externally with advisors, boards and investors, that is going to differentiate which startups survive and become the disruptive businesses of tomorrow. Money is fast turning into a commodity.

Venture Capital 78

Venture Capital Syndicate Syndication Bandwidth 78

Startup Professionals Musings

DECEMBER 1, 2017

This also requires a base critical mass, and real work to differentiate and convert users to paying customers. Certainly you shouldn’t be afraid of using the word “profit” in your discussions with a business advisor, potential investors, partners, and even customers. Price based on product costs plus margin.

Revenue 166

Revenue Affiliate Advertising Retention 166

The Equity Kicker

OCTOBER 1, 2013

Having the same strategy as everyone else makes it hard to differentiate and generate outsize returns. As I’ve written before, our investment strategy here at Forward Investment Partners is to focus on innovative online retail businesses. This creates opportunity for us.

Silicon Valley 92

Silicon Valley eCommerce Deal Flow Valuation 92

The Startup Magazine

SEPTEMBER 12, 2019

Over the long term, this results in numerous partners with different expectations on returns and performance. Your venture capital partners will, of course, have your company’s best financial interests at heart. In an industry known for its high turnover, a strong and differentiated company culture can help attract and retain talent.

Early Stage 85

Early Stage Venture Capital Bootstrapping Pre-Money Valuation 85

Startup Professionals Musings

FEBRUARY 13, 2016

This is also the place to first mention patents and any other differentiators that put you ahead of competition. You need to identify pricing details, sales channels, strategic partners and a customized marketing plan consistent with your industry and target segment. How big and growing is the total market and your target segment?

Sweat Equity 120

Sweat Equity Advisory Board Liquidity Event Startup 120

Lightspeed Venture Partners

OCTOBER 22, 2012

As you may have already seen , I’ve been breaking down the pitches on this season’s Shark Tank while wearing my work hat as a Managing Director at Lightspeed Venture Partners. This implies a pre money valuation of $1.045M. See my breakdown of week 2 for more on how to calculate pre money valuation.). Cousins Maine Lobster.

Pre-Money Valuation 101

Pre-Money Valuation Valuation Dilution Differentiation 101

Ben's Blog

AUGUST 17, 2020

When speaking with founders and private growth investors, we hear countless references to “multiples paid” on current or near-term revenue; both obsess over this because a higher multiple translates to a higher valuation. How valuation multiples work Why did multiples become a shortcut-heuristic for estimating valuations in the first place?

Valuation 36

Valuation Balance Sheet Cofounder Forecast 36

The Equity Kicker

JULY 8, 2019

From around 2000, and perhaps coinciding with the need to work harder to win deals as opportunities dried up after the internet bubble burst, individual partners at VC firms began adding ‘helping CEOs win’ to their job descriptions. . Value add strategies make partners at VC firms more personally effective. Building platforms.

Portfolio 84

Portfolio LP Venture Capital Partner 84

The Next Web

APRIL 6, 2013

My daily work consists of connecting innovative A round startups with potential investors or strategic partners. You will more likely be in the drivers’ seat on valuation, thus control when your company is not actively seeking additional investments. Yet this is the time when you will be most in demand by investors.

Term Sheet 126

Term Sheet Due Diligence Strategic Investors Valuation 126

Both Sides of the Table

APRIL 25, 2011

The founders could reinvest this in growth (0% tax, focus on future equity growth) or take the profits of $12 million and divide amongst the founding partners. They get “product business envy&# because they read too much TechCrunch about their product brethren raising money at crazy valuations and getting sold at even crazier ones.

Silicon Valley 332

Silicon Valley IP Dividend Finance 332

Up and Running

APRIL 11, 2016

Michelle Stansbury , a realtor at Bluegrass Partners Trust Realty says, “My first year was a lot of fumbling around figuring out what didn’t work. When asked how he figured out who his target market was, he responded, “I looked at the volume of sales in my city, from the property valuation administrator, and then looked for the ‘sweet spot.’

Reputation 60

Reputation Cofounder Naming Business Plan 60

Startup Company Lawyer

MARCH 14, 2010

I was actually somewhat surprised that the following investors have agreed to use the Series Seed documents in certain of the their deals: Baseline, Charles River Ventures, SV Angel (Ron Conway), First Round Capital, Harrison Metal Capital, Mike Maples, Polaris Venture Partners, SoftTech VC and True Ventures. under $500K). “ .

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

This is going to be BIG.

JULY 30, 2015

Do seed investors have Limited Partners with different return expectations than Series A and beyond investors? I've never heard any limited partner ask me if I can generate a better return than their Series A funds. I assumed the following: Seeds are done as a $1mm round on a pre-money valuation of $5mm. Exits are $250mm.

Venture Capital 60

Venture Capital Pre-Money Valuation IRR Valuation 60

Babbling VC

JANUARY 30, 2011

Specifically the top tier funds have access to management for your businesses, access to potential partners and are likely to sit on the boards of the companies that could buy you. I've often enough written about how to figure this out and I say to focus on the partner and not the fund when doing your due diligence. Go ahead and ask.

Europe 68

Europe Germany Due Diligence Valuation 68

The Equity Kicker

AUGUST 8, 2017

For those of you who are time poor here’s the tltr: Forward Partners operates a focused investment strategy because it helps us make better investment decisions and provide better support to our companies. For the three and a half years that we’ve been going, Forward Partners has operated a focused investment strategy.

Artificial Inteligence 78

Artificial Inteligence eCommerce Early Stage Algorithm 78

Startup Professionals Musings

MARCH 12, 2023

Too many entrepreneurs tell me they are looking for an investor, and can’t differentiate between venture capital (VC) investors versus accredited angel investors. VCs tend to demand more control of your spending and strategic decisions, with required board seats and lower valuations. How big is your startup opportunity?

Angel Investor 246

Angel Investor IRR Venture Capital Valuation 246

Hearpreneur

AUGUST 18, 2017

Every premium water was differentiated solely through an exotic source origination story and design. This is really just the environmental side, not even touching on our social impact (2% of revenues), that go towards our clean water projects in Africa and our non-profit partners in education and conservation in Hawaii.

Hawaii 48

Hawaii Fiji Africa Cofounder 48

Duct Tape Marketing

JUNE 20, 2023

He is co-leader of the McKinsey Digital Practice, a senior partner based in New York, and a member of McKinsey’s Shareholders Council, the firm’s board of directors. He's a co-leader of the McKinsey Digital Practice, a senior partner based in New York, and a member of McKinsey's Shareholders Council. This is John Jantsch.

Technical Review 63

Technical Review Silicon Valley Generative AI Arizona 63

Startup Professionals Musings

JUNE 13, 2020

Too many entrepreneurs tell me they are looking for an investor, and can’t differentiate between venture capital (VC) investors versus accredited angel investors. VCs tend to demand more control of your spending and strategic decisions, with required board seats and lower valuations. How big is your startup opportunity?

Angel Investor 314

Angel Investor Entrepreneur IRR Valuation 314