Early Stage Finance Post-Money Valuation Startup 
Both Sides of the Table
SEPTEMBER 25, 2010
When I first read Paul Graham’s blog post on “High Resolution&# Financing I read it as a treatise arguing that convertible notes are better than equity. As I’m generally a believer in ‘pricing rounds’ I initially didn’t agree with the premise of the post. Photo credit: D. and not a min.
Both Sides of the Table
OCTOBER 12, 2014
These tensions seep out in some angels or seed funds publicly or semi-privately deriding later-stage VCs for their “bad” behavior. I have seen bad behavior from later-stage VCs, believe me. But I have seen equally bad behavior from super early stage investors. As always a balanced perspective is in order.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Both Sides of the Table
JUNE 5, 2011
2 preamble issues having read the comments on TC today: 1: I know that the prices of startup companies is much great in Silicon Valley than in smaller towns / less tech focused areas in the US and the US prices higher than many foreign markets. That’s the deal you get when you’re raising in a good market for startup financing.
Both Sides of the Table
JUNE 5, 2015
Over the years I’ve written extensively about the downsides of convertible notes for startups such as here , here and here. It’s worth reading his post to understand the problem. Pre-money ($8m) + investment ($2m) = Post-money ($10m) and the investors now own 20% of your company $2m / $10m.
Both Sides of the Table
SEPTEMBER 18, 2014
It’s like we need a finance 101 course for entrepreneurs. Me: There is no rational explanation for valuations of A round companies by ANY objective financial measure. In finance they call it “terminal value” but the truth is the price is as arbitrary at your A round as it is at your seed round.
Both Sides of the Table
AUGUST 1, 2010
Short summary of my posts: 1. There is a structural reason that VCs are investing at early stages, 2. In these cases we proactively offer to lead their next round of financing. Tags: Startup Advice Tech Market Analysis VC Industry. I’ve written about it myself (Is VC Seed Funding Dead?)
Professor VC
FEBRUARY 12, 2015
I doubt Aileen Lee of Cowboy Ventures believed that a horse with a horn existed when she wrote Welcome To The Unicorn Club: Learning From Billion-Dollar Startups in late 2013, but she probably had no idea that it would become a hot buzzword in Silicon Valley and hit the cover of mainstream business press, Fortune Magazine. igthwghjg2q2g8hu4).
Expert insights. Personalized for you.
286 
Let's personalize your content