VC Cafe

OCTOBER 31, 2022

Many companies are now having to resort to tough measures in order to stay afloat, including layoffs, down rounds and tough terms from current investors. The market for pre-seed and seed rounds should remain relatively active, since those companies are many years away from even thinking about going public. In Q3/2022, $2.6

Founder 173

Founder Technical Review Down Round Liquidation Preference 173

Berkonomics

JUNE 8, 2017

It is most common to greatly overprice such a round of financing, valuing the enterprise well above what it may be worth at the moment for friends or related investors who do not have the sophistication or willingness to challenge the valuation. It is most often a win-win for both you and the strategic partner.

Private Equity 106

Private Equity Valuation Cap Table Accredited Investor 106

Startup Company Lawyer

MARCH 14, 2010

In addition, I think that a “peace treaty&# between early-stage investors and startup companies on standard terms (at least at a term sheet level) is a step in the right direction. I suspect that this seems reasonable if there is basically no due diligence due to the early stage of the companies. (By under $500K).

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

The Equity Kicker

JANUARY 25, 2016

On Friday it seemed like everyone in the venture capital industry was again reading about market turmoil, this time the news is that angel investors are pulling back and valuations taking a hit. The best startups capture all the returns so focusing too much on entry valuation is a mistake. I read it too, because it’s a big deal.

Venture Capital 60

Venture Capital Angel Investor Startup Participating Preferred 60

Hippoland

NOVEMBER 13, 2016

But as we’ve seen, these valuations can be hocus-pocus — even at later stage rounds, we’ve seen lots of companies of late fall from grace and become massively devalued overnight when they cannot raise their next round at a higher valuation. If a company raises a good round, it gets marked up to the new value.

IRR 48

IRR Valuation Portfolio Due Diligence 48

thebarefootvc

AUGUST 26, 2015

However, many variables come into play when investing at the early stage. A VC’s job is to spot sustainable trends while they are in formation stages, and form a point of view on the timing of the adoption of those trends. Build solid relationships with strategic partners and customers. Don’t be penny wise, pound foolish.

Marketing 40

Marketing Investment Bankers Valuation China 40

thebarefootvc

AUGUST 26, 2015

However, many variables come into play when investing at the early stage. A VC’s job is to spot sustainable trends while they are in formation stages, and form a point of view on the timing of the adoption of those trends. Build solid relationships with strategic partners and customers. Don’t be penny wise, pound foolish.

Marketing 40

Marketing Investment Bankers Valuation China 40

thebarefootvc

JULY 26, 2015

However, many variables come into play when investing at the early stage. A VC’s job is to spot sustainable trends while they are in formation stages, and form a point of view on the timing of the adoption of those trends. Build solid relationships with strategic partners and customers. Don’t be penny wise, pound foolish.

Marketing 40

Marketing Investment Bankers Valuation China 40

Altgate

MARCH 8, 2009

I say ecosystem as opposed to industry because it is not just the VC funds themselves that are imploding, instead the collapse includes entrepreneurs and startups that were funded by VCs, angel investors, service providers like lawyers, bankers and accountants as well as limited partner investors in VC funds. But some will be saved.

Later Stage 34

Later Stage Early Stage Venture Capital Portfolio 34

abovethecrowd.com

APRIL 20, 2016

One key to this population growth has been the remarkable ease of the Unicorn fundraising process: Pick a new valuation well above your last one, put together a presentation deck, solicit offers, and watch the hundreds of million of dollars flow into your bank account. By January of 2016, that number had ballooned to 229.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

www.paulgraham.com

APRIL 28, 2010

Another concept we need to introduce now is valuation. I say "in theory" because in early stageinvesting, valuations are voodoo. As a company gets more established,its valuation gets closer to an actual market value. As a company gets more established,its valuation gets closer to an actual market value.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

Scalable Startup

OCTOBER 26, 2011

It’s no longer based on a hunch, unless the company is in trouble and needs money to finish what the first round started. This problem often leads to a lowered valuation or “down round” Not a great scenario.) If the company is doing well, the second round is easier to acquire. Accel Partners.

Mezzanine 22

Mezzanine Due Diligence IPO Angel Investor 22

NZ Entrepreneur

JULY 8, 2019

In the first of a three part series on early stage business investment, we asked serial entrepreneur and investor Josh Comrie what three key things New Zealand entrepreneurs must get better at when it comes to seeking angel investment. So, I went deep (currently sitting at 26 different early-stage ventures). Valuations.

New Zealand 44

New Zealand Entrepreneur Valuation Dilution 44