YoungUpstarts

SEPTEMBER 15, 2018

The pre-money valuation of other startups is based on the following factors. However, you may have more liquid assets because of which you think that your valuation should be more than what your investors have actually spelt out. Young businesses do take time to catch up on the revenue curve.

Pre-Money Valuation 124

Pre-Money Valuation Valuation Sweat Equity Startup 124

Lightspeed Venture Partners

OCTOBER 22, 2012

The company has gotten off to a fast start, $150k in revenue in the first two months, with all the marketing coming from social media. The founders have more demand than they know what to do with, and want to raise $55k for 5% equity in the company to buy a second truck. This implies a pre money valuation of $1.045M.

Pre-Money Valuation 101

Pre-Money Valuation Valuation Dilution Differentiation 101

The Startup Magazine

SEPTEMBER 12, 2019

Venture funding isn’t real validation – market traction and continued profitability and revenues are. 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. . Focus on Product Development First.

Early Stage 85

Early Stage Venture Capital Bootstrapping Pre-Money Valuation 85

Tim Keane

JANUARY 12, 2010

The investors and the entrepreneurs are – or should be – aware that the price of the company’s equity is set by the market – in simplest terms, what an informed buyer is willing to pay.   You can vary both valuation and term-sheet assumptions (in the gray boxes) to assess the impact on the values of the business.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Lightspeed Venture Partners

OCTOBER 1, 2012

pre money valuation). Cuban has interest in a gluten free diet, and claimed that he liked the company, but his only concern was valuation. The company came back and offered him 20% of the company for the $200k (an $800k pre money valuation). They were seeking $200k for 10% of the company (a $1.8M

Pre-Money Valuation 151

Pre-Money Valuation Valuation Participating Preferred Preferred Stock 151

Gust

OCTOBER 20, 2011

Individual accredited investors in typical angel deals put personal capital at risk for an equity share of growth-oriented, start-up companies. In 2011, the valuation of pre-revenue, start-up companies is typically in the range of $1.5–$2.5 The range of the data is from a low pre-money valuation of $0.8

Valuation 146

Valuation Pre-Money Valuation Intellectual Property Technical Review 146

Gust

NOVEMBER 4, 2011

In brief, a cap acts to place a limit on the conversion price of a convertible note such that investors are guaranteed a minimum number of shares for their bridge loans if the startup does a priced equity round at a high pre-money valuation – “high” meaning above the cap, which is often a heavily negotiated term. (The

Valuation 98

Valuation Pre-Money Valuation Merger Vesting 98

Both Sides of the Table

APRIL 14, 2010

Or you find out that management has been through a few rounds of dilution such that the management team only has 10-15% of the total equity of the company and as a new investor you know a priori that management is either going to quit soon after your investment or are going to ask you for a big increase in their equity package.

Venture Capital 289

Venture Capital Liquidation Preference Common Stock Dividend 289

Gust

OCTOBER 12, 2011

In rare cases where a startup is cash flow positive very early in its lifecycle, it may actually be able to pay off the notes without raising any equity investment. Practically speaking, if the company is out of money, it’s out of money, so the difference between numbers 1 through 4 may not mean much.

Finance 107

Finance Term Sheet Pre-Money Valuation Early Stage 107

dondodge.typepad.com

JANUARY 15, 2011

Community is more powerful than money or technology » August 11, 2007 How much equity for investors and employees? Should I take Angel or VC money? How much money should I raise? How much equity should I give up? How much equity should I grant to early employees?

Equity 40

Equity Employee Dilution Valuation 40

Up and Running

SEPTEMBER 20, 2021

The use of a cap table for a company comes into play when it has to track the total amount of shares, the value of shares, and the equity ownership of all the shareholders. The data of the company, such as debt and the company’s equity ownership, is laid out with the help of a cap table. Convertible notes.

Cap Table 112

Cap Table Pre-Money Valuation Stock Options Option Pool 112

This is going to be BIG.

MARCH 23, 2015

So whereas seed rounds five years ago may have been less than a million dollars on a pre-money valuation of three or four million, today''s seed is up and over a million and usually closer to two million, with post money valuations nearing $10 million. and at least it will all make sense.

Post-Money Valuation 60

Post-Money Valuation Valuation Pre-Money Valuation Seed Money 60

VC Cafe

SEPTEMBER 26, 2022

ValuatIon should be a function of value, not ego. Kawasaki’s Law of Pre-Money Valuation: for every full-time engineer, add $500,000; for every full-time M.B.A., A good way to think about valuation in seed/pre-seed is to reverse engineer the next round. Our goals, their goals. subtract $250,000.

Founder 187

Founder Startup Valuation Pre-Money Valuation 187

Hippoland

AUGUST 31, 2018

Another consideration here is that in the minds of pre-seed investors (who are very often small funds and will be allocating most of their capital in the first round or two), valuation matters a lot more to them than a larger fund who might invest in you at this stage as an option for later. This is typically a $6-10m round.

Pre-Money Valuation 90

Pre-Money Valuation Valuation Silicon Valley Early Stage 90

www.paulgraham.com

APRIL 28, 2010

There never has to be atime when you have no revenues. It costs you a little more equity, but being able to play the two firms off each other (as well as ask one if the other is being out of line) is invaluable. This is a good plan for someone with kids, because it takes mostof the risk out of starting a startup.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

Hippoland

AUGUST 31, 2018

Another consideration here is that in the minds of pre-seed investors (who are very often small funds and will be allocating most of their capital in the first round or two), valuation matters a lot more to them than a larger fund who might invest in you at this stage as an option for later. This is typically a $6-10m round.

Pre-Money Valuation 48

Pre-Money Valuation Valuation Silicon Valley Early Stage 48

www.currentlyobsessed.com

MAY 28, 2010

Instead of “We are worth about $5m because we have done XYZ and we need to raise $1m, so let’s sell 20%&# it’s better to think about valuation as an output variable, like “Let’s raise $2mm and sell 33%, our (pre-money) valuation is therefore $4mm.&# Future value is key.

Valuation 42

Valuation Channel Pre-Money Valuation Term Sheet 42