Both Sides of the Table

SEPTEMBER 25, 2010

Taking it from an investor perspective (not me, angels) I think it’s totally unfair to see early angels invest, take more risk, help you get to the next level through both sweat & money, and then pay a higher price because the round had a convertible note with no cap.

Finance 286

Finance Term Sheet Technical Review Warrant 286

Agile VC

APRIL 17, 2011

Mobile Usage: 8% of 2010 query volume (mobile app download growth of 344% YoY). Post-money valuation probably no higher than $12M (2). Gross Margin: 94% –> i.e. for every $1 of revenue Kayak only spends $0.06 paying for travel data from ITA or others (customers acquisition spend is not included in COGS).

Pre-Money Valuation 113

Pre-Money Valuation Liquidation Preference Dividend Common Stock 113

The Startup Lawyer

OCTOBER 9, 2010

But this morning I read a Dallas Business Journal article that I found amusing: A new accelerator is planning to invest $200,000 and provide up to 45,000 square feet of office space to about 10 mobile app startups in exchange for 15-20% equity in each startup. (a) How much office space does a 2-3 person mobile app startup really need?

Dallas 91

Dallas Seed Capital Incubator Post-Money Valuation 91

Both Sides of the Table

MAY 13, 2013

If you give $2 million for 20% of a company ($8 million pre + $2 million investment = $10 million post-money valuation) that has no product and no customers and it turns around 3 months later and sells for $5 million it would hardly be fair for investor to get $1 million back (20% of the proceeds).

Liquidation Preference 357

Liquidation Preference Early Stage Retention Lock-up Period 357

Lightspeed Venture Partners

SEPTEMBER 21, 2013

to fund the company at a $6M post money valuation from a number of investors including Selena Gomez. 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 161

Pre-Money Valuation Valuation Dilution Distribution 161

betashop.com

OCTOBER 8, 2012

The time to start thinking mobile first vs. web first was 6 months ago. At Fab, mobile is already 33% of our visits and sales and we just launched our mobile apps nearly a year ago. Very soon mobile (smartphones and tablets) will be a majority of the usage of Fab, and of your service. 500M valuation = $5B target.

Technical Review 108

Technical Review Technology Software Review Valuation 108