Startup Professionals Musings

OCTOBER 5, 2015

I challenge any entrepreneur, for example, to define the difference between "seed-stage" and "early-stage" financing. A new VC seed market has been emerging, especially over the past five years: It usually appears in the form of a prototypical seed round of $1 million to $1.5 Business accelerator funding.

Seed Stage 120

Seed Stage Finance Early Stage Startup 120

Pascal's View

JULY 9, 2017

While VC deals remain marketed on a pre-money basis, sophisticated investors know that what matters most is the post-money (how much of the company will I own after all of the new shares have been issued). They do not recognize that they may have already contractually sold a meaningful portion of equity in their company.

Post-Money Valuation 49

Post-Money Valuation Valuation Cap Table Covenant 49

Berkonomics

DECEMBER 17, 2020

Let’s take a few minutes to examine the kind of equity financing available to small or early stage businesses. In most cases, these applicants for equity funding must be rooted in technology to apply to this limited discussion. Some can supply more when syndicating with other such groups. Friends and family investors.

Equity 62

Equity Finance Liquidity Event Angel Groups 62

View from Seed

JANUARY 26, 2016

There are a number of factors that have contributed to the rise of pre-seed rounds, but the strongest have been the frothy late-stage financing market, coupled with both the scaling-up of some of the early winners in the institutional seed ecosystem and the scaling-down of some larger funds that retrenched after the financial crisis.

Seed Stage 120

Seed Stage Early Stage Cofounder Finance 120

OnlyOnce

FEBRUARY 9, 2022

On the heels of the announcement we made last month about our Series B financing , we are now announcing the launch of a new program called Bolster Prime and a new venture capital fund called Bolster Ventures. This is another big week for us at Bolster. What about the middle?

Silicon Valley 62

Silicon Valley Venture Capital Cap Table Early Stage 62

Austin Startup

MARCH 7, 2021

Texas is the most promising technology market in the United States. If you want to launch a new business, this is a great market to launch from because you can easily reach all of the major Texas cities with one office. The larger Dallas metro-region is the fourth largest in the country and Houston metro-region is the fifth.

Texas 90

Texas San Antonio Houston Dallas 90

Feld Thoughts

AUGUST 2, 2010

Dave McClure: MoneyBall for Startups: Invest BEFORE Product/Market Fit, Double-Down AFTER. Specifically, our seed investments are not “options on the next round.&# We price our seed rounds as equity investments, always lead or co-lead (as Fred describes in ? Tags: Seed Financing seed VC.

Angel Investor 152

Angel Investor Cofounder Syndicate Syndication 152

VC Adventure

AUGUST 10, 2010

In it, he describes our philosophy around seed investing and differentiates it from what others (but not everyone) in the market is doing. We price our seed rounds as equity investments, always lead or co-lead … and treat them the same way we would a $10m investment… when we make a seed investment, it gets everyone’s attention.

Syndicate 74

Syndicate Syndication Due Diligence SEM 74

Professor VC

MARCH 12, 2015

It was a great product addressing a large market opportunity and was interested in seeing how the AngelList syndicate process worked. I don''t know the reasons for selling, but presumably Authy felt their prospects weren''t promising as a standalone entity and may have had difficulty raising further financing.

Syndicate 28

Syndicate Syndication Silicon Valley Common Stock 28

Professor VC

JULY 25, 2013

Another closely related area is that of variable pricing on convertible debt or equity deals where different investors have different caps. Another area where I''m not sure I stand is with some of the more formal referral and syndication programs that are emerging now.

Term Sheet 46

Term Sheet Silicon Valley Syndicate Syndication 46

Agile VC

FEBRUARY 2, 2012

I’ll focus for now on the business itself, there’s plenty of other info on the web if you care to understand the equity ownership or financing history of Facebook and frankly this has been fairly well known for awhile. ==. Here’s my first look at Facebook viewed through the lens of their IPO filing. Facebook, Inc.

IPO 100

IPO South Korea Venezuela Revenue 100

David Teten

NOVEMBER 15, 2013

The average equity fund investor earned a market return of only 4.25%. One are investors in truly new asset classes, e.g., frontier markets like the Pakistani stock market, which really do provide new opportunities for investors to put capital to work. I can only think of a few exceptions to this zero-sum principle.

Management 114

Management Pre-Money Valuation Venture Capital New Hampshire 114

Berkonomics

APRIL 3, 2014

We’ve spoken of financing a young company through friends and family, known as “inside angels.” There are three classes of equity investors for early stage businesses that we have not yet considered. Often grouped into formal organizations, these investors are sophisticated, helpful, and connected. Raising money'

Equity 92

Equity Finance Liquidity Event Angel Groups 92

Rob Go

JANUARY 7, 2013

Actually, growth equity firms I find are best at this, because they have very specific financial criteria that they look for, such as ranges for revenue, ebitda, growth, etc. Post Revenue: 6 1/2 (the 1/2 is for a company that had revenue, but did a major product pivot as part of the financing). Consumer: 9. Premium Service: 5.

Portfolio 49

Portfolio Seed Stage Cofounder B2B 49

Tim Keane

APRIL 12, 2006

When they discuss market size, do they distinguish between current and addressable markets? This whole topic is of interest to investors for a number of reasons beyond the logic of market dynamics. What’s your attitude about “next round” financing? Does the group have an interest only in a specific area? past round one.

Entrepreneur 60

Entrepreneur Valuation Sweat Equity Common Stock 60

Professor VC

SEPTEMBER 2, 2010

The fall semester at SJSU started this week and had the first class meeting of my Entrepreneurial Finance class, which was overflowing with students standing, sitting on the floor and begging to get in. Whether you buy this or not for public equities, the market for early stage private companies has always been wildly inefficient.

Angel Investor 28

Angel Investor Angel Groups San Jose Venture Capital 28