Gust

NOVEMBER 18, 2012

How much is NewCo worth to investors at this point (pre-money valuation)? What percentage of NewCo does the investor own after the $1M infusion (post-money ownership percentage)? On the other hand, if the pre-money valuation is $4M, the founders ownership remains at a healthy 80% level.

Valuation 187

Valuation Pre-Money Valuation NPV Intellectual Property 187

Startup Professionals Musings

SEPTEMBER 6, 2010

How much is NewCo worth to investors at this point (pre-money valuation)? What percentage of NewCo does the investor own after the $1M infusion (post-money ownership percentage)? On the other hand, if the pre-money valuation is $4M, the founders ownership remains at a healthy 80% level.

Valuation 234

Valuation Pre-Money Valuation NPV Startup 234

Hunter Walker

AUGUST 7, 2017

Satya and I rarely see less than a 10% pool created at seed and Series A, but are increasingly engaging with founders about 12-15% pools, especially if you’re going to be hiring in-demand engineers (computer vision, AI) and/or (more typically post Series A), building out a senior executive team.

Equity 94

Equity Pre-Money Valuation Option Pool Founder 94

YoungUpstarts

SEPTEMBER 4, 2017

For startup founders and CEO’s it’s also just as common to see them place too much focus on the amount of money raised, and the pre-money valuation, rather than the value that each investor can bring to the table. Often investing in startups is seen as an all or nothing endeavor. Plus, founders and entrepreneurs talk.

Pre-Money Valuation 167

Pre-Money Valuation Seed Stage IP Deal Flow 167

Both Sides of the Table

JUNE 5, 2015

In the old days VCs funded off of a “pre-money” valuation. If you add the pre-money valuation (let’s say $8 million) to the amount of money you’re raising (let’s say $2 million) you get the post-money valuation. Those are the big three.

Pre-Money Valuation 150

Pre-Money Valuation Option Pool Post-Money Valuation Dilution 150

The Startup Magazine

SEPTEMBER 12, 2019

Before opening yourselves up to venture capital, you should have enough customers to demonstrate real value and present specific numbers to support your pre-money valuation. . He holds a Bachelor’s and Master’s degree in Mechanical Engineering and began his career as an SAP consultant. It certainly was for us.

Early Stage 85

Early Stage Venture Capital Bootstrapping Pre-Money Valuation 85

venturehacks.com

OCTOBER 21, 2010

If you don’t keep your eyes on the option pool while you’re negotiating valuation, your investors will have you playing (and losing) a game that we like to call: Option Pool Shuffle You have successfully negotiated a $2M investment on a $8M pre-money valuation by pitting the famous Blue Shirt Capital against Herd Mentality Management.

Option Pool 68

Option Pool Pre-Money Valuation Dilution Warrant 68

www.mattbartus.com

DECEMBER 9, 2012

Let’s say you receive a term sheet for a $1 million investment at a $3 million fully diluted pre-money valuation, and you’re kind of disappointed. Take a look at the numbers: Pre-Money. One possibility is to negotiate a higher valuation and offer warrants (i.e., Post-Money. Option Pool.

Warrant 40

Warrant Valuation Pre-Money Valuation Term Sheet 40

Professor VC

JULY 16, 2012

Median pre-money valuation of $2.5 There are a number of reasons for the premium, not the least is the cost of engineering talent. With deal velocity so great in Silicon Valley along with the large numbers of experienced entrepreneurs and investors, there is little need to associate with an angel group.

Angel Groups 36

Angel Groups Silicon Valley Pre-Money Valuation Alaska 36

www.paulgraham.com

APRIL 28, 2010

The angel agrees to invest at a pre-money valuation of $1 million.The company issues $200,000 worth of new shares to the angel; ifthere were 1000 shares before the deal, this means 200 additionalshares. Free money to start a startup in a placewhere few succeed is hardly free. So theyre going to raise $200,000.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

www.paulgraham.com

OCTOBER 23, 2010

You make elaborate plans for a product, hire a team of engineers to develop it (people who do this tend to use the term "engineer" for hackers), and then find after a year that youve spent two milliondollars to develop something no one wants. Ididnt realize that when we were raising money. Thereis no rational way.

Startup 105

Startup Cofounder Software Stock 105

thestartuplawyer.com

FEBRUARY 24, 2010

Before I bring in any principals I will have the company all set up, some engineering done and patents pending. Before I bring in any principals I will have the company all set up, some engineering done and patents pending. He obviously never launched a startup and got shafted by a co-founder. Will (should) they insist on it?

Cofounder 40

Cofounder Founder Preferred Stock Startup 40

www.paulgraham.com

APRIL 28, 2010

2 ] When you negotiate terms with a startup, there are two numbers youcare about: how much money youre putting in, and the valuation ofthe company. The valuation determines how much stock you get. Ifyou put $50,000 into a company at a pre-money valuation of $1million, then the post-money valuation is $1.05

Angel Investor 63

Angel Investor Syndicate Syndication Dilution 63