View from Seed

SEPTEMBER 14, 2021

Warning – this assumes some basic knowledge of VC performance metrics. 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. For a primer, I would recommend refreshing yourself here. Ok, let’s jump in.

Valuation 295

Valuation Pre-Money Valuation Distribution Early Stage 295

Hippoland

AUGUST 31, 2018

Then I asked him about his metrics, which are good, but they are were not at series A level. I have a few founders I’ve backed who are just on the border of post-seed / series A metrics and are able to get term sheets from both series A and post-seed investors. And there’s a huge difference in valuation.

Pre-Money Valuation 90

Pre-Money Valuation Valuation Silicon Valley Early Stage 90

Both Sides of the Table

FEBRUARY 15, 2016

The earlier the round, the less capital you need and the more reasonable your valuation the less time that is needed generally to raise capital. In other words, raising $2 million at a $6 million pre-money valuation has always been easier & quicker than raising $20 million at any valuation.

Burn Rate 150

Burn Rate Cap Table Valuation Software Review 150

View from Seed

SEPTEMBER 14, 2021

Warning – this assumes some basic knowledge of VC performance metrics. 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. For a primer, I would recommend refreshing yourself here. Ok, let’s jump in.

Valuation 156

Valuation Pre-Money Valuation Distribution Early Stage 156

Agile VC

MAY 26, 2011

round which closed in November 2003, and the pre-money valuation between $10 million and $15 million. We’ve had a supportive board and encouraging metrics and a helpful climate for our community news notion (now 51 sites in 3 states). It was a $4.7M The rest, as they say, is history. We’ve been lucky.

Term Sheet 178

Term Sheet Silicon Valley Technical Review Social Network 178

Hippoland

AUGUST 31, 2018

Then I asked him about his metrics, which are good, but they are were not at series A level. I have a few founders I’ve backed who are just on the border of post-seed / series A metrics and are able to get term sheets from both series A and post-seed investors. And there’s a huge difference in valuation.

Pre-Money Valuation 48

Pre-Money Valuation Valuation Silicon Valley Early Stage 48

Tim Keane

JANUARY 12, 2010

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.   Pre-bubble Siliicon Valley deals were popularly valued at multiples of revenue.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Gust

NOVEMBER 4, 2011

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

Valuation 98

Valuation Pre-Money Valuation Merger Vesting 98

Berkonomics

NOVEMBER 4, 2016

So how do you use financial projections as valuation metrics when you know the odds of those being accurate predictors of the future are so very unreliable? For example, $500,000 maximum value to each element yields either a maximum pre-money enterprise valuation of $$2 million or $2.5

Valuation 48

Valuation North Carolina Oklahoma City Silicon Valley 48

David Teten

FEBRUARY 9, 2015

If you are testing the market to see what terms you can get, just say, “We are targeting to raise $X at pre-money valuation of $Y.” As much as possible, emphasize the traction you have already achieved and the metrics you are using to measure that traction.

Venture Capital 60

Venture Capital Pre-Money Valuation Prospectus Early Stage 60

This is going to be BIG.

MARCH 23, 2015

So whereas seed rounds five years ago may have been less than a million dollars on a pre-money valuation of three or four million, today''s seed is up and over a million and usually closer to two million, with post money valuations nearing $10 million. If you''re worried about the runway, try doing less things.

Post-Money Valuation 60

Post-Money Valuation Valuation Pre-Money Valuation Seed Money 60

Pascal's View

AUGUST 21, 2011

I would add, however, that, in my view, the valuations at which VCs invested in these “hot” social media companies are precisely the product of “greed emotions”. It is also now evident that these inflated valuations have not proven to be sustainable in the public markets. tech sector have more than doubled since 2007.

Valuation 50

Valuation Social Media Media IPO 50

Berkonomics

DECEMBER 19, 2013

[Email readers, continue here.] Metrics and management: What might be the first indication the company will not be able to achieve its goals and objectives? Valuation and fund-raising : How did you arrive at your proposed pre-money valuation? Has this been tested with investors?

Pre-Money Valuation 105

Pre-Money Valuation Liquidity Event Cofounder Valuation 105

This is going to be BIG.

SEPTEMBER 7, 2012

There are a lot of people that artificially group together performance metrics for venture, and try to extrapolate successful stratagies from it. 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? Do what you're good at. It's that simple.

Later Stage 99

Later Stage Down Round Pre-Money Valuation Early Stage 99