Both Sides of the Table

FEBRUARY 4, 2016

The result of all of this new money? Median pre-money valuations skyrocketed – shooting up 3x in just three years as investors competed to christen imaginary animals with imaginary valuations. And then at once the market felt constipated – just look at Q415.

LP 150

LP Valuation Burn Rate Pre-Money Valuation 150

View from Seed

SEPTEMBER 14, 2021

Both early- and late-stage startup valuations are currently elevated. For context, seed-stage pre-money valuations are up 24% from H1 2020 to H1 2021. Early-stage valuations are up 70%, and late-stage valuations are up 103% (source Pitchbook ).

Valuation 156

Valuation Pre-Money Valuation Distribution Early Stage 156

Startup Professionals Musings

MARCH 18, 2016

As an entrepreneur looking for professional investors, one of the quickest ways to lose credibility and get rejected is to start with a ridiculously high pre-money valuation. This factor is more relevant to venture capital investors who come in at a later stage and expect more traction to qualify.

Intellectual Property 120

Intellectual Property Valuation Pre-Money Valuation Startup 120

Both Sides of the Table

MAY 30, 2018

Many VCs will have a distribution curve where they’ll do a small number of early-stage deals (say $1.5–3 3 million invested at a $6–10m pre-money), a larger number of “down the fairway” deals ($4–5 million at a $15–25 million pre) and a few later-stage deals (say $8–10 million at a $30–40 million pre).Of

Valuation 324

Valuation Post-Money Valuation Pre-Money Valuation Cofounder 324

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.

Pre-Money Valuation 90

Pre-Money Valuation Valuation Silicon Valley Early Stage 90

Gust

SEPTEMBER 27, 2014

In addition to the fact that it is often easier to get accepted by an accelerator, or to make it to the finals of a business plan competition, or get funded by an angel group, those vehicles frequently serve the role of “curators” for the later stage financing world.

Angel Groups 159

Angel Groups Elevator Pitch Software Review Deal Flow 159

ithacaVC

MARCH 11, 2016

And I think that early stage companies should take the risk and not use 409A valuations. As companies move to later stages and have meaningful revenues and profits then 409A valuations begin to make more sense. The 409A valuation is not based in VC reality. I would like to add another Rule 409A thought.

Pre-Money Valuation 40

Pre-Money Valuation Stock Options Valuation Later Stage 40

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.

Pre-Money Valuation 48

Pre-Money Valuation Valuation Silicon Valley Early Stage 48

This is going to be BIG.

SEPTEMBER 7, 2012

If you're investing at pre-money valuations in the low to mid single digits, then how much worse can the next round even get? If I invest at a 4 pre and the next round investor says, "I'll do this, but only at a 2 pre," then we're already effed and something went wrong. Down from what?

Later Stage 99

Later Stage Down Round Pre-Money Valuation Early Stage 99

K9 Ventures

MAY 14, 2011

The incubators invest usually for an equity stake and buy equity at a extremely low valuation (for example, 7% for $15,000, which implies a pre-money valuation of less than $200,000). The super angels of today will be the uVCs of tomorrow, and the uVCs of today, will become the early stage venture capitalists.

Preferred Stock 125

Preferred Stock Seed Stage Incubator Early Stage 125

www.paulgraham.com

APRIL 28, 2010

Angels and even VC firms occasionally do this, but they alsoinvest at later stages. The problems are different in the early stages. Here are the terms: a $2 millioninvestment at a pre-money valuation of $4 million, meaning thatafter the deal closes the VCs will own a third of the company (2 /(4 + 2)).

Technical Review 76

Technical Review Startup Software Review Angel Investor 76