Professor VC

JULY 25, 2013

This is the feeling you get from watching the venture capitalists talk about the entrepreneurs and other investors in the film. I''m all for transparency, but won''t be naming names in this post as I don''t want to put some entrepreneurs in a difficult position. Startup outcomes tend to be very binary.

Term Sheet 46

Term Sheet Silicon Valley Syndicate Syndication 46

Rob Go

AUGUST 26, 2013

As a result, many seed funds have pulled back, started making later stage investments, and even focusing more on mini-Series A’s with a syndicate of seed funds. What this means for entrepreneurs today is that the “genesis rounds” are much harder to raise, especially if you are a relatively unproven founding team.

Valuation 68

Valuation Seed Stage Syndicate Syndication 68

View from Seed

JANUARY 28, 2016

But let’s make this more concrete in the context of an entrepreneur raising a round: How NextView Approaches Pre-Seed Rounds. 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.

Cofounder 120

Cofounder Finance Founder Syndicate 120

Both Sides of the Table

APRIL 3, 2010

I know many super experienced entrepreneurs who don’t understand the basics of how fund size and age can affect them so I thought it was worth establishing a baseline. In a world of The Funded, VentureHacks and entrepreneur blogs this kind of informations spreads like wildfire. Let me explain: 1. And they don’t.

Venture Capital 265

Venture Capital Term Sheet Early Stage Silicon Valley 265

Austin Startup

MARCH 7, 2021

It’s like a dam has broken and now there is a flood of new entrepreneurs, investors, and big companies moving to Texas. In 2019 and 2020, we saw hundreds of millions of dollars in non-dilutive funding go to Texas startups, most of which had never worked with the government before. they are all chasing talent. all Bay Area firms?—?

Texas 90

Texas San Antonio Houston Dallas 90

Professor VC

JANUARY 17, 2008

I think the title of this post is a TV show, but fitting as there has been much debate in the venture community as to the whether angel investors are good or bad for entrepreneurs and VCs. One of my comments was that we would likely see more institutionalization of angel groups and syndication of deals among groups.

Pre-Money Valuation 28

Pre-Money Valuation Angel Investor Angel Groups Valuation 28

Rob Go

JANUARY 17, 2017

In the last three investments I’ve made, there has either been a lifecycle VC involved or one was interested but didn’t end up being part of the syndicate. But I usually counsel entrepreneurs in this position to do the extra legwork to push the investor closer in the direction of a high-conviction seed.

Due Diligence 28

Due Diligence Seed Stage Syndicate Syndication 28

Both Sides of the Table

FEBRUARY 25, 2010

A reminder that it is important for all entrepreneurs is to remember to be careful about “deal drift.” We were trying to optimize around a few criteria: price, size of round, number of syndicate partners and, of course, terms. Conversely I offered the same deal to another entrepreneur who decided to shop around longer.

Technical Review 301

Technical Review Term Sheet Due Diligence Venture Capital 301

Agile VC

JULY 11, 2012

Like any other form of diluting your focus… it occasionally works, but usually doesn’t. Im a former Silicon Valley entrepreneur turned East Coast VC. But usually what makes a VC partnership great in its early days doesn’t easily translate into other new strategies down the road. Can’t wait for the next part.

Silicon Valley 240

Silicon Valley Carried Interest Cofounder Boston 240

Rob Go

JANUARY 28, 2016

But let’s make this more concrete in the context of an entrepreneur raising a round: How NextView Approaches Pre-Seed Rounds. 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.

Cofounder 28

Cofounder Finance Founder Syndicate 28

Professor VC

JUNE 20, 2011

There are definitely some lessons in the story for entrepreneurs and angel investors, but before discussing, I thought Id share a bit about the early financing history for iControl. Most companies dont come close to their rose colored financial models prepared when going out for Series A financing. So what does this all mean.

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. In some cases this turned into nothing, but in a few cases it had magnificent outcomes for me and my gang, along with the entrepreneurs. Here’s the scenario.

Recapitalization 70

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

Rob Go

MAY 20, 2014

The end result though is that the dynamics around series A rounds has started to seem pretty murky for entrepreneurs. Below are some broad guidelines on the major topics around series A’s that I hear entrepreneurs thinking about. In that case however, the founders might end up taking a lot of dilution.

Valuation 76

Valuation Dilution Post-Money Valuation Syndicate 76

Austin Startup

AUGUST 1, 2017

TL;DR: In a market that has historically idolized huge, splashy financings and exits, an increasing number of entrepreneurs are realizing that everyone else’s definition of success — particularly among certain large VCs — isn’t necessarily aligned with their own. Most individual VCs can only support about 7–10 companies at a time.

Liquidation Preference 48

Liquidation Preference Common Stock Valuation Silicon Valley 48