Both Sides of the Table

SEPTEMBER 18, 2014

Revenue multiple? Me: There is no rational explanation for valuations of A round companies by ANY objective financial measure. It’s simply what a market is willing to pay based on a future belief that your company will grow and non-linear rates and be worth much more in the future. A down round? Employment.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Ben's Blog

JULY 16, 2013

Perhaps you are caught in the “Series A crunch” or perhaps you are a consumer company and expected that you would be valued on users rather than revenue like the last time. What about the efficient market hypothesis? Aren’t markets rational? Because markets are not logical; markets are emotional. How could this be?

Down Round 78

Down Round Marketing Preferred Stock Post-Money Valuation 78

Lightspeed Venture Partners

OCTOBER 7, 2012

Week three’s breakdown covered topics like how hard momentum is to turn around, and how participating preferred stock works. This time I’ll break down week four of this season. They won a design award at a trade show, but have no revenue and no orders. BACK 9 DIPS. They were right to do so.

Technical Review 110

Technical Review Technical Cofounder Valuation Pre-Money Valuation 110

Ben's Blog

JULY 16, 2013

Perhaps you are caught in the “Series A crunch” or perhaps you are a consumer company and expected that you would be valued on users rather than revenue like the last time. What about the efficient market hypothesis? Aren’t markets rational? Because markets are not logical; markets are emotional. How could this be?

Marketing 46

Marketing Preferred Stock Post-Money Valuation Down Round 46

Gust

SEPTEMBER 17, 2014

Revenue multiple? Me: There is no rational explanation for valuations of A round companies by ANY objective financial measure. It’s simply what a market is willing to pay based on a future belief that your company will grow and non-linear rates and be worth much more in the future. A down round? What proof points?

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

David Teten

AUGUST 7, 2019

To simplify, there are two classic approaches to public markets investing. The first is Momentum Investing , “a strategy to capitalize on the continuance of an existing market trend”, which usually meaning that the price has been rising in the recent past. LTV / CAC, revenue growth, etc.)

Venture Capital 60

Venture Capital Valuation Stock NDA 60

Both Sides of the Table

FEBRUARY 8, 2016

And when prices are dropping on a VCs existing companies in market, there is a substantial reduction in FOMO (fear of missing out) for new deals, which means that investors take their time in making investment decisions. We do this in our consumer lives with everything ranging from housing purchases to public stocks.

Burn Rate 150

Burn Rate Cap Table Balance Sheet Dilution 150

www.paulgraham.com

APRIL 28, 2010

A lawyer I asked about it said: When the company goes public, the SEC will carefully study all prior issuances of stock by the company and demand that it take immediate action to cure any past violations of securities laws. There never has to be atime when you have no revenues. Those that dont fail all seem to get boughtor go public.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

abovethecrowd.com

APRIL 20, 2016

Why the Unicorn Financing Market Just Became Dangerous…For All Involved. A high performing, high-growth SAAS company that may have been worth 10 or more times revenue was suddenly worth 4-7 times revenue. The same thing happened to many Internet stocks. By January of 2016, that number had ballooned to 229.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Both Sides of the Table

FEBRUARY 14, 2016

I recently survey more than 150 VC friends from all stages and geographies what they thought about the market by asking “Which of the following statements best describes your mood heading into 2016?” I’ll spare you the math and point out that this means we funded 0.104% of the market. In short – no.

Valuation 150

Valuation Down Round Startup Later Stage 150

Both Sides of the Table

MARCH 30, 2016

It is an heroic accomplishment in a brutal fund-raising market in which only market leaders can bring in that sort of money. Every VC who’s been the business for a long time realized first hand that the VC markets were changing rapidly as early as Q3 of 2015. But of course public markets had begun gyrating. $30 million.

Balance Sheet 150

Balance Sheet Burn Rate Valuation Forecast 150

Reid Hoffman

JUNE 8, 2021

And all of the other smart and operational decisions that have enabled Airbnb to weather the storm and go on to have one of the most successful public market debuts. It’s a market. We took nearly 2% of the company’s stock, and we put it aside and we created, it was actually 9.2 And I thought, well, no one’s marketing.

Silicon Valley 69

Silicon Valley Hosting Rhode Island Design 69

NZ Entrepreneur

JULY 8, 2019

I made my first investment in the stock market when I was 12 years old. Soon after that first investment, I started my first business, and am now on my fifth (all $1m+ in revenue, but not all ‘successful’). I personally funded my first ventures, then led the two rounds that have seen Ambit take in $2.2m

New Zealand 42

New Zealand Entrepreneur Valuation Dilution 42

Reid Hoffman

JUNE 8, 2021

And all of the other smart and operational decisions that have enabled Airbnb to weather the storm and go on to have one of the most successful public market debuts. It’s a market. We took nearly 2% of the company’s stock, and we put it aside and we created, it was actually 9.2 And I thought, well, no one’s marketing.

Silicon Valley 36

Silicon Valley Hosting Rhode Island Design 36

VC Cafe

MAY 18, 2022

After a 13 year bull market run, anywhere you look in the stock market these days, it’s mostly RED. The tech companies that have been stock market darlings, breaking new records, are struggling, many missing analysts expectations. And the markets reacted to all of these. Down rounds are coming.

Term Sheet 190

Term Sheet Startup Valuation Ukraine 190

Both Sides of the Table

OCTOBER 18, 2015

There is a lot of uncertainty about the state of the private, high-growth technology markets and the venture capital markets that underpin them. There is nobody to blame for this abandonment of common sense – it is simply the market being the market and we’re doomed to repeat history. It’s just a market.

IPO 150

IPO Venture Capital LP SEC 150