View from Seed
MARCH 24, 2021
Taking Corporate Venture Money: When it Makes Sense “PayPal took on these investors in small part because it gave us an imprimatur in the stodgy and regulated world of financial services. Hiring Your Team. Finance is about reporting on historical performance and future planning through the lens of financial metrics.”
Both Sides of the Table
JUNE 5, 2015
I am reminded of this problem every time my firm does a financing where a note went before us but more specifically I was reminded by this great post by Brad Feld to talk about the pre-money vs. post-money conversion issue. It’s worth reading his post to understand the problem. It’s very simple.
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Both Sides of the Table
JUNE 5, 2011
So in 2011 as a startup company if you can generate lots of demand you can definitely raise an A round of capital (say $3 million) at a $7 or 8 million pre-money valuation or slightly higher whereas just two years ago you would have struggled. million post-money valuation with no revenue. That’s fine.
www.mint.com
MARCH 9, 2010
What is the post-money valuation of your last round? Post-money valuation” is the value of the company after the last round of money was put in (again, lines of credit and promises don’t count). Check out the personal finance topic by clicking here. So easy on the eyes! All Rights Reserved.
Feld Thoughts
FEBRUARY 9, 2016
” Many companies have hired ahead of their growth rate because they had the cash to do so. I watched, participated, and suffered through every type of creative financing as companies were struggling to raise capital in this time frame. But, as you raise more money at higher valuations, this will normalize.
Both Sides of the Table
AUGUST 1, 2010
In these cases we proactively offer to lead their next round of financing. If we can’t agree on price I tell entrepreneurs that they can raise money and say “GRP will speak for half of the round.&# Done – the only signal is positive. If we invest the follow-on money comes from our non-seed fund (e.g.
Seeing Both Sides
JULY 15, 2009
VCs have an unfair advantage when it comes to financings. A typical start-up company will do 2-4 venture capital financings before a successful exit (or, conversely, an ignomious ending). In contrast, the typical venture capitalist, either individually or across their partnership, will do 5-10 financings in any given year.
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