Both Sides of the Table

JUNE 30, 2016

How much you raise determines valuation I know it sounds crazy but at the earliest stages of a company your valuation often is determined by how much money you raise. A $15–20 million valuation sounds better than an $8 million valuation, doesn’t it? But people never do. Justin is right. But it’s actually not that silly.

Pre-Money Valuation 292

Pre-Money Valuation Valuation Early Stage Startup 292

The Startup Magazine

AUGUST 16, 2020

You also recognize that to do this swiftly, you require some form of financing. This is particularly the case if you make unwise decisions with regards to the way you finance the expansion. Valuate your business. This is an integral step in the financing process. You want to grow. This is important for two main reasons.

Finance 165

Finance Valuation Equity Search 165

The Startup Magazine

JANUARY 14, 2020

To this end, a number of commercial green buildings have been designed with features that promote workplace productivity and ambiance. Healthy workplace and enhanced productivity – new research suggest that the state of indoor building environment and physical characteristics can impact worker productivity and their health and well-being.

Green 138

Green California Government Valuation 138

View from Seed

OCTOBER 21, 2014

Using NextView as an example, since we both seek to lead the seed round and only lead during this round, I’ve seen this trend manifest in one of two ways: In a priced round, the entrepreneur will often share their valuation ask (or a stated floor) for the pre-money valuation of their company much sooner in the process.

Valuation 336

Valuation Founder Seed Stage Angel Investor 336

The Startup Magazine

JULY 25, 2021

In fact, the announcement of the share issue led to a decline in Galactic share prices and overall market valuation. Below are tips on how you can boost growth and increase your business’s market valuation. Spotting new trends ahead of your competitors is an excellent way to increase your market valuation.

Valuation 162

Valuation Artificial Inteligence Dilution Marketing 162

Both Sides of the Table

JUNE 28, 2018

Until recently it was headquartered 2 blocks from our offices in Santa Monica so we literally saw it emerge under our feet and we proudly invested in the last 3 rounds of financing. How could Bird really be worth the reported $2 billion valuation that I read about in this press? Forget the valuation?—?I Brand matters.

San Francisco 256

San Francisco Valuation Technical Review Los Angeles 256

Hearpreneur

JANUARY 22, 2023

Consumers are becoming increasingly health-conscious and seeking to understand their options for treatments and healthcare products. For example, a startup SaaS company can use a specialized app to create a good product management process and keep track of the project's progress. Thanks to Sean Stevens, Immerse Education ! #5-

Artificial Inteligence 124

Artificial Inteligence Technical Review Entrepreneur Social Media 124

ReadWriteStart

OCTOBER 7, 2010

As a thumb rule, try to get enough validation so that you can get to at least a $2 million pre-money valuation before raising equity capital. That is debt financing that converts into equity at the Series A valuation once the price for that is set. (I Doesn't Retek have anything in that product category?

Valuation 119

Valuation Silicon Valley Pre-Money Valuation Bootstrapping 119

View from Seed

MARCH 24, 2021

At NextView Ventures we have written many pieces about venture capital — how to raise it, build your business, engage with investors, iterate your product, navigate expanding industries, etc. What Are Your Valuation Expectations? Rethinking the Standard Fundraising Deck “I’d make it crystal clear what your product actually does.

Seed Stage 177

Seed Stage Hiring IPO Analytics 177

ReadWriteStart

JULY 2, 2022

To be successful, you need to deal with products in strong demand. Unlike a regular online store, you don’t need products to run an e-commerce site specializing in dropshipping. Conforming with Torchbankz, the dropshipping industry is expected to reach a market valuation of $557.9 Promotes products and finds a client.

Cost 140

Cost Software Review Technical Review Cloud 140

Both Sides of the Table

SEPTEMBER 10, 2021

And the loosening of federal monetary policies, particularly in the US, has pushed more dollars into the venture ecosystems at every stage of financing. What Has Changed in Financing? On the one hand, you’re over paying for every investment and valuations aren’t rational. even before the pandemic itself has been fully tamed.

Pre-Money Valuation 471

Pre-Money Valuation Valuation Venture Capital Early Stage 471

Startup Professionals Musings

NOVEMBER 26, 2012

Once you have a potential investor excited about your team, your product, and your company, the investor will inevitably ask “What is your company’s valuation?” How much is NewCo worth to investors at this point (pre-money valuation)? This is the most concrete valuation element, usually called the asset approach.

Valuation 270

Valuation Pre-Money Valuation NPV Intellectual Property 270

ReadWriteStart

JUNE 1, 2020

You must have a prototype or a minimum viable product (MVP). To fund the sudden spike in production, funds will be required for additional inventory and wages. It is going to cost a lot of money just to get the initial batch of products to test the market and would definitely require external funding. Inception stage.

Startup 150

Startup Entrepreneur Elevator Pitch Seed Stage 150

Both Sides of the Table

JUNE 22, 2011

But this mania to not miss out on the next big thing is driving some investors to pay growth-equity prices for traditional market risk (as in, they’re paying up before it is clear there is product / market fit). And for some that means that despite waiting they may see worse valuations in the future than now. Have a cushion.

Saudi Arabia 309

Saudi Arabia Valuation IPO Technical Review 309

Steve Blank

JULY 11, 2017

Before the rapid rise of Unicorns, (startups with a valuation over a billion dollars), when boards were still in control, they “encouraged” the hiring of “adult supervision” of the founders after they found product/market fit. Adult Supervision. These new CEOs would also act as a brake to temper the founder’s excesses.

Part-Time VPE 314

Part-Time VPE Liquidity Event Stock Engineer 314

Both Sides of the Table

JUNE 5, 2011

2: As expected at least one person accused me of writing this post because I want to see lower valuations. As the risks below get eliminated the higher the valuation investors are prepared to pay. You’re unlikely to want to make this sort of investment with the product or the market not yet validated. That’s stupid.

Pre-Money Valuation 336

Pre-Money Valuation Valuation Silicon Valley Stock 336

Tim Keane

MARCH 9, 2011

How should I finance my new venture? It’s a deceptively simple question:  what is the optimal way to finance a new startup? Misaligned interests that lead to poor financing choices are often very problematic for first time entrepreneurs in young companies.  « Leaving a Trail | Main. |

Finance 83

Finance Bootstrapping Startup Equity 83

Startup Professionals Musings

MARCH 25, 2023

Should they focus on increasing revenues and profitability, or entice more and more users with “free” services, to increase their valuation. The concept of free goods and services to get you hooked, financed by deep pockets, or advertising, seems marginally ethical to many. Most are still confused about the right priority.

Valuation 235

Valuation Revenue Viral Retention 235

The Startup Magazine

JULY 17, 2022

Automation or enhancement of internal production procedures. Creation of prototypes, first products, and models Evaluation of alternative substances Evaluation of alternative substances. If the certifying organization verifies that your initiative is a research and development project, you are legally entitled to receive financing.

Developer 136

Developer Germany Software Developers Software Development 136

YoungUpstarts

OCTOBER 28, 2015

This article highlights their advice on issues ranging from financing to patent trolls: While startups may believe lawyers are too costly, working with one early on avoids potentially serious problems later. “And if you have a valuation cap; a higher cap is always better than a lower cap.” ” The Cost of Financing.

Convertible Security 100

Convertible Security IP Technical Review Software Review 100

YoungUpstarts

MAY 14, 2018

Marks, founder and managing partner of High Rock Partners and author of “ Middle Market M & A: Handbook for Investment Banking and Business Consulting “ Conventional wisdom says that a company grows by reaching new customers, increasing its workforce, expanding marketing or launching new products or services.

Acquisition 124

Acquisition Finance Raleigh Mezzanine 124

Steve Blank

APRIL 26, 2022

At the turn of the century after the dotcom crash, startup valuations plummeted, burn rates were unsustainable, and startups were quickly running out of cash. For existing investors, sometimes it was a “pay-to-play” i.e. if you don’t participate in the new financing you lose. This article previously appeared in TechCrunch.

Cram Down 408

Cram Down Founder Venture Capital Recapitalization 408

Hunter Walker

JUNE 9, 2023

My friends at Weekend Fund recently put out a round-up newsletter of some investor responses to the question “ Do Valuations Matter? They view valuation as an important guardrail in evaluating an investment opportunity. Like NEA, Homebrew takes an ownership-driven approach to investing.

Valuation 69

Valuation Seed Stage Portfolio Framework 69

YoungUpstarts

MARCH 11, 2015

With the daily demands of running a business along with the financial pressures and challenges inherent in early-stage companies, a business valuation may not be the first thing an entrepreneur thinks of when he awakes each morning. When does a startup company need a business valuation? The timing will vary depending on the purpose.

Valuation 100

Valuation Stock Options CPA Merger 100

Startup Professionals Musings

SEPTEMBER 6, 2010

Once you have a potential investor excited about your team, your product, and your company, the investor will inevitably ask “What is your company’s valuation?” How much is NewCo worth to investors at this point (pre-money valuation)? This is the most concrete valuation element, usually called the asset approach.

Valuation 234

Valuation Pre-Money Valuation NPV Startup 234

Gust

NOVEMBER 18, 2012

Once you have a potential investor excited about your team, your product, and your company, the investor will inevitably ask “What is your company’s valuation?” How much is NewCo worth to investors at this point (pre-money valuation)? This is the most concrete valuation element, usually called the asset approach.

Valuation 187

Valuation Pre-Money Valuation NPV Intellectual Property 187

Startup Professionals Musings

JUNE 21, 2020

Should they focus on increasing revenues and profitability, or entice more and more users with “free” services, to increase their valuation. The concept of free goods and services to get you hooked, financed by deep pockets, or advertising, seems marginally ethical to many. Most are still confused about the right priority.

Revenue 434

Revenue Valuation Viral Retention 434

Startup Professionals Musings

JUNE 5, 2021

In finance, a bubble is too much money chasing assets, greater asset production and a herd mentality. In finance, “this time is different” is the beginning of a new bubble. High valuation, low profit. It’s much easier to spot current bubbles, and resist the urge to build a “me too” product. Overconfidence.

Demand 362

Demand Government Venture Capital Valuation 362

VC Adventure

AUGUST 31, 2017

So no surprise that when River Cities Capital released an overview of SaaS operating and valuation benchmarks, I hung on every juicy detail. The valuation metrics show this clearly. There are a ton of private SaaS financings. In 2016 there were over 2,000 financing rounds of private SaaS companies ($18.5Bn invested).

IPO 113

IPO Vertical Balance Sheet Valuation 113

Both Sides of the Table

AUGUST 12, 2010

In the technology world there are a few websites that most startups track to keep up with the latest financings, acquisitions, product announcements and gossip: BusinessInsider, TechCrunch, Mashable, GigaOm, etc. Specifically we talked about Slide having gotten a $550 million valuation before being sold to Google for $182 million.

Seed Stage 232

Seed Stage Valuation Private Equity Venture Capital 232

Startup Professionals Musings

JANUARY 22, 2020

Despite the recent growth of crowdfunding, angels continue to be one of the major sources of financing for new ventures, so it behooves every aspiring entrepreneur to understand who these people are. Since they know that most startups fail, their target return is ten times investment, so be prepared to talk cost vs revenue and product life.

Angel Investor 322

Angel Investor Valuation Syndicate Syndication 322

Both Sides of the Table

MAY 4, 2013

Should I trust my instincts for founders and products or should I be more focused on the market size or business plan? I have always advised startup companies against letting valuations get massively ahead of market norms. I like to see how they improve their products when there are obvious holes. What stage? What price?

Deal Flow 347

Deal Flow Early Stage Investment Bankers Technical Review 347

Both Sides of the Table

SEPTEMBER 29, 2009

They should heed the age old advice that raising slightly more money while you can is always better than trying to optimize future valuations. Should VC’s really be impacted by public market valuations when the money that they’re investing today should be for returns in 7-10 years? Short answer – yes. The deal was done in late 2007.

Burn Rate 263

Burn Rate Valuation Pre-Money Valuation Private Equity 263

Berkonomics

AUGUST 3, 2023

Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). And even with the significant cost of credit card debt, many entrepreneurs aggressively use existing cards to finance a startup.

Private Equity 118

Private Equity Valuation Cap Table Accredited Investor 118

View from Seed

JANUARY 27, 2021

100M is a meaningful increase from our $50M third fund, though it’s still quite small in the grand scheme of venture, especially amid the recent wave of late stage financings and SPACs. What hasn’t changed is that our heart lies in working with founders to find product/market fit and to begin to grow.

LP 411

LP Early Stage Seed Stage Venture Capital 411

Startup Professionals Musings

OCTOBER 19, 2015

That’s why I recommend that they find a co-founder who loves business challenges, including marketing and finance. Thus it’s a waste of time for most entrepreneurs to be looking for investors until they have a product and some customer revenue. Most founders bootstrap product development.

Technical Review 120

Technical Review Intellectual Property Cofounder Bootstrapping 120

ithacaVC

NOVEMBER 14, 2014

I have written about startup valuations previously. If you are advising startup founders, I strongly suggest having them read all 4 of the posts to get the lay of the startup valuation land. There’s a reason it’s so difficult to figure out – valuations have little basis in reality for early stage companies.

Valuation 69

Valuation Startup Down Round Early Stage 69