article thumbnail

What Does the Post Crash VC Market Look Like?

Both Sides of the Table

When you look at how much median valuations were driven up in the past 5 years alone it’s bananas. Median valuations for early-stage valuations tripled from around $20m pre-money valuations to $60m with plenty of deals being prices above $100m. Except the music stopped.

article thumbnail

Why Raising Too Much Money Can Harm Your Startup

Both Sides of the Table

I was reminded of this yesterday watching my friend Justin Kan on Snapchat with this 10-second reminder, “No matter how much you raise at your company you’ll end up spending it in 12–24 months” https://medium.com/media/8594cb16d022a083932b0f3d60b79ebd/href I would probably amend it to say 12–18 months. You have money, you spend it.

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

A VC’s take on the Season 5 premier of Sharktank

Lightspeed Venture Partners

Despite having over 500k downloads and making $450k in revenue over the last 21 months, he had only $185k left in the bank, which meant that he would be out of business in 90 days if he didn’t raise more money. pre money valuation and planned to use the money to market the app. pre money valuation).

article thumbnail

Strategy Roundtable: Try To Get At Least $2M Pre-Money In Seed Round Valuation

ReadWriteStart

So at any point, if you are trying to raise money, and you are hearing from investors that you are too early and have too little validation, it may be a good thing. 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.

Valuation 119
article thumbnail

CTAN is the Most Active Angel Group Nationwide

SiliconHills

The deals, with a median investment round of $590,000, had pre-money valuations of $2.5 When angels co-invest with other types of investors the media […] The post CTAN is the Most Active Angel Group Nationwide appeared first on SiliconHills. And 74 percent of the deals were syndicated.

article thumbnail

Shark Tank Season 4 Week 6 breakdown

Lightspeed Venture Partners

The company has gotten off to a fast start, $150k in revenue in the first two months, with all the marketing coming from social media. This implies a pre money valuation of $1.045M. See my breakdown of week 2 for more on how to calculate pre money valuation.).

article thumbnail

Keep It Under Your Hat: Valuation Caps and the $650 Million Sale of MySpace for $125 Million

Gust

In brief, a cap acts to place a limit on the conversion price of a convertible note such that investors are guaranteed a minimum number of shares for their bridge loans if the startup does a priced equity round at a high pre-money valuation – “high” meaning above the cap, which is often a heavily negotiated term. (The