Startup Professionals Musings

JANUARY 22, 2020

Typically, individual investments will be less than $100K, but a group of angels may syndicate multiples. Since they know that most startups fail, their target return is ten times investment, so be prepared to talk cost vs revenue and product life. Document your plan and your financial projections.

Angel Investor 322

Angel Investor Valuation Syndicate Syndication 322

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

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. Traction and revenue? It could be with the entrepreneur or the investors.

Term Sheet 120

Term Sheet Equity Startup Seed Stage 120

David Teten

JULY 23, 2019

See How VCs structure a syndicate and recruit coinvestors for more on this. – Ideally revenues and other financial metrics if we can include that. – Fundraising history summary, including notable current investors and last round valuation. . TEMPLATE DOCUMENT FOR SHARING INVESTMENT OPPORTUNITIES WITH OTHER VCs.

Portfolio 60

Portfolio Elevator Pitch Syndicate Syndication 60

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. Such comparisons can only be made for companies at the same stage of development, in this case, for pre-revenue startup ventures. The range of the data is from a low pre-money valuation of $0.8

Valuation 146

Valuation Pre-Money Valuation Intellectual Property Technical Review 146

David Teten

DECEMBER 3, 2019

That Google document provides cut and pasteable text I can share with other investors, based on their stage, focus, and appetite. . Lighter Capital, a Revenue Based Investing VC, offers a Cost of Capital Calculator. I also use several living Google docs to maintain the minutes and the group agendas for my fixed weekly meetings.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Both Sides of the Table

FEBRUARY 25, 2010

We were trying to optimize around a few criteria: price, size of round, number of syndicate partners and, of course, terms. million at a $15 million pre-money valuation. Morgan Stanley had proposed a higher valuation to let them in. You know that every turn of the legal documents can add weeks. Yes, this was stupid.

Technical Review 301

Technical Review Term Sheet Due Diligence Venture Capital 301