Startup Professionals Musings

SEPTEMBER 6, 2010

How much is NewCo worth to investors at this point (pre-money valuation)? What percentage of NewCo does the investor own after the $1M infusion (post-money ownership percentage)? On the other hand, if the pre-money valuation is $4M, the founders ownership remains at a healthy 80% level.

Valuation 234

Valuation Pre-Money Valuation NPV Startup 234

Agile VC

MAY 26, 2011

One partnership was clearly very divided and a vocal minority of GPs thought consumer internet companies were a massive waste of time and money. round which closed in November 2003, and the pre-money valuation between $10 million and $15 million. It was a $4.7M The rest, as they say, is history.

Term Sheet 178

Term Sheet Silicon Valley Technical Review Social Network 178

Tim Keane

JANUARY 12, 2010

  In a bottom up approach, the forecast is built from actual user projections. An average of these ranges results in a pre-money valuation of about $4MM.   If similarly situated companies are seeing $3.5MM pre-money valuations, this might become the target valuation.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

David Teten

NOVEMBER 15, 2013

I have frequently heard the expression from other investors, “We can put a lot of money to work here.” This is the psychology that drives VCs to load up a company with more capital, rationalizing that $5m at a $20m pre-money valuation is little different than $10m at a $40m pre-money valuation.

Management 114

Management Pre-Money Valuation Venture Capital New Hampshire 114

Business Plan Blog

DECEMBER 26, 2013

This process may include the provision of various scenarios on revenues and costs as the investors validate forecasts initially presented. Pre-money valuation. The term sheet is a legally binding document and should include the following elements: - Offer terms, such as: Company, founder and investor details.

Angel Investor 51

Angel Investor Due Diligence Pre-Money Valuation Angel Groups 51

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

Seeing Both Sides

NOVEMBER 30, 2008

That's because the two key assumptions regarding how much money a portfolio company would require from start to finish (the exit) have changed: (1) the length of time before exit; and (2) the number of portfolio companies that would attract outside capital to lead follow-on financing rounds.

Pre-Money Valuation 20

Pre-Money Valuation Portfolio Post-Money Valuation Valuation 20

Berkonomics

DECEMBER 19, 2013

Valuation and fund-raising : How did you arrive at your proposed pre-money valuation? Metrics and management: What might be the first indication the company will not be able to achieve its goals and objectives? When and under what conditions should the CEO and management of the company be changed?

Pre-Money Valuation 105

Pre-Money Valuation Liquidity Event Cofounder Valuation 105