Operations Partner Pre-Money Valuation Revenue 
Agile VC
APRIL 17, 2011
How They Make Money: Majority of Kayak’s revenue actually comes from advertising on their site (55%), not lead generation or referral fees to travel suppliers as you might think (more on this below). Financial Snapshot: 2010 Revenue: $170 million. Revenue growth: 51% YoY (2010), 1% YoY (2009), 131% YoY (2008).
Both Sides of the Table
SEPTEMBER 29, 2009
Also, it’s harder to pay a $30 million pre-money value on an unproved company when you see public companies with $100 million in sales trading for less than $20 million. Huge downturns have a real impact on the revenue line of start-ups and therefore the pressure on valuations. I put my money on the latter.
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Both Sides of the Table
JUNE 22, 2011
Ah, but today’s Internet companies have real revenue! In addition to FOMO it is partly driven by massive increase in valuations for earlier-stage companies who raised money at bit seed prices but who still have product risk. So at GRP Partners we’re very active now. I said that at the Founder Showcase, too.
Gust
OCTOBER 20, 2011
In 2011, the valuation of pre-revenue, start-up companies is typically in the range of $1.5–$2.5 Angels typically invest in companies operating in industry sectors with which they are familiar. Such comparisons can only be made for companies at the same stage of development, in this case, for pre-revenue startup ventures.
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
www.paulgraham.com
APRIL 28, 2010
There never has to be atime when you have no revenues. To be a startupyou need to be the band that sells a million copies of a song, notthe band that makes money by playing at individual weddings and barmitzvahs. And we think its better if startups operate out of their ownpremises, however crappy, than the offices of their investors.
Lightspeed Venture Partners
SEPTEMBER 23, 2012
The entrepreneurs had made $150k in revenue running classes for four months at a gym in New York, selling out the classes at $35/class. The right number to focus on is pre money valuation as that is how an investor is valuing the company before the investment. Post money valuation = Pre money valuation + Investment.
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