Both Sides of the Table

JUNE 5, 2011

I raised my A round at a $31.5 million post-money valuation with no revenue. We had companies pitching us that had almost no revenue at all and they were raising $10-15 million in capital at a $40-50 million pre-money valuation. Another firm we saw tried to raise $15 million at a $60 million pre-money with similar metrics.

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336

Growthink Blog

MAY 23, 2011

This venture capital financing - usually between $3 and $10 million - is the first of a number of rounds of outside investment over a period of three to five years. With this capital, the company propels itself to $50 million+ in revenues, and to either a sale to a strategic acquirer or to an initial public offering.

Angel Investor 112

Angel Investor Venture Capital Sweat Equity Cram Down 112

abovethecrowd.com

APRIL 20, 2016

A high performing, high-growth SAAS company that may have been worth 10 or more times revenue was suddenly worth 4-7 times revenue. Also, they have a strong belief that any sign of weakness (such as a down round) will have a catastrophic impact on their culture, hiring process, and ability to retain employees.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

This is going to be BIG.

SEPTEMBER 7, 2012

There are a lot of people that artificially group together performance metrics for venture, and try to extrapolate successful stratagies from it. In the late 90's, it wasn't surprising that companies with no revenue that were funded at 100 million dollar valuations didn't survive. Down from what? Do what you're good at.

Later Stage 99

Later Stage Down Round Pre-Money Valuation Early Stage 99

Reid Hoffman

JUNE 8, 2021

And I hired a COO, Belinda Johnson , and she said, “No, if people don’t like you, you should meet with them.” The burden [should] just be that we care; that if we learn something, we improve it, and that we don’t only use single output metrics and its growth at all costs. That was totally counterintuitive. And I said, “Why?”

Silicon Valley 69

Silicon Valley Hosting Rhode Island Design 69

Reid Hoffman

JUNE 8, 2021

And I hired a COO, Belinda Johnson , and she said, “No, if people don’t like you, you should meet with them.” The burden [should] just be that we care; that if we learn something, we improve it, and that we don’t only use single output metrics and its growth at all costs. That was totally counterintuitive. And I said, “Why?”

Silicon Valley 36

Silicon Valley Hosting Rhode Island Design 36