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. Finance is about reporting on historical performance and future planning through the lens of financial metrics.” ” (Lee Hower).
Lightspeed Venture Partners
OCTOBER 7, 2012
The company has done $400k in sales in less than two years and had an early test deal with a local supermarket chain that they were massively overperforming on. He had been at it for 6 months and had no sales or distribution lined up yet. The entrepreneur launched Zomm in late 2010 and did $700k in sales that year. WRAP UP.
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Both Sides of the Table
JUNE 5, 2011
Then you can do a little bit of research and find out that very few companies ever achieve this valuation in a trade sale so you’re clearly gunning for an IPO. That’s the deal you get when you’re raising in a good market for startup financing. million post-money valuation with no revenue.
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). I worry about everything: money, sales, engineering, support, and recruiting.
Feld Thoughts
FEBRUARY 9, 2016
I watched, participated, and suffered through every type of creative financing as companies were struggling to raise capital in this time frame. I suffered through the next financing after implementing a complex structure, or a sale of the company, or a liquidation. Your existing investors might be willing to provide it.
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.
This is going to be BIG.
MARCH 28, 2021
You go back and forth on a price and you eventually settle on a post-money valuation cap of $6.5mm, meaning you have sold about 23% of your company. The first round is $3mm with a post-money valuation of $10mm, the Series A is $9mm with a post-money valuation of $30mm and so on.
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