Both Sides of the Table

OCTOBER 12, 2014

” If you invested at $8m pre-money and put $2m in (thus you own 20% of a company at a $10m post-money valuation) and if you put another $2m into a round at a $40m valuation raising $10m ($50m post) you end up with half your money at $8m pre and half at $40m pre thus your average price goes up dramatically.

Technical Review 336

Technical Review Later Stage Early Stage LP 336

Steve Blank

JULY 19, 2011

They really wanted to invest, but it was the beginning of the bubble, and I wanted (what was then) an absurd valuation. All we had were six slides, and I wanted a $10 million post-money valuation. We had gone back and forth with them on valuation, but this was a new firm and they wanted to close a deal with us.

Post-Money Valuation 250

Post-Money Valuation Venture Capital Valuation IPO 250

Agile VC

APRIL 17, 2011

Post-money valuation probably no higher than $12M (2). Pre-money valuation was approx. Led by Oak Investment Partners with participation by General Catalyst, Sequoia, & Accel and others. Pre-money valuation was at least $250M (2). My partner @ LeeHower looks back: [link] 5 days ago Search.

Pre-Money Valuation 113

Pre-Money Valuation Liquidation Preference Dividend Common Stock 113

The Equity Kicker

APRIL 10, 2015

We’ve just been writing an update for investors about the progress our partner companies have been making. A few of them have done good up rounds and the easiest way to describe the magnitude is to talk about the valuation multiple.

Valuation 60

Valuation Pre-Money Valuation Post-Money Valuation Option Pool 60

View from Seed

JANUARY 11, 2017

But mainly we did it because these corporate VCs were among the only groups willing to invest at PayPal’s somewhat inflated post-money valuation, during the middle of the dot-com crash when traditional VCs pulled back sharply and other sources of funding were constrained. 4) Are these investment partners for the long haul?

Strategic Investors 120

Strategic Investors Post-Money Valuation Seed Stage Cofounder 120

Both Sides of the Table

AUGUST 1, 2010

Short summary of my posts: 1. Many (Union Square Ventures, Foundry Group, True Ventures, GRP Partners, Mike Hirshland at Polaris Ventures) do it the right way – we treat it as a normal investment and we don’t have a “options&# strategy with our investment. Knowing What the Seed Funding Policy of your VC is.

Post-Money Valuation 298

Post-Money Valuation Term Sheet Warrant Partner 298

View from Seed

SEPTEMBER 13, 2018

Effective) post-money valuation. Similarly, the capital-efficiency to date is taken as reflective of inherent in the business itself and operating mindset of the team, rather than as the amount of capital used for discovery of product-market fit that is decoupled from the efficiency post-traction. 100K in MRR was cited).

Seed Stage 136

Seed Stage Post-Money Valuation Valuation Startup 136

Both Sides of the Table

NOVEMBER 4, 2009

Let’s assume that the company raised it at a normal VC valuation, which means it gave up 33% of the company and thus $5 million / 33% = $15 million post-money valuation. They raised $5 million in their B round.

Stock Options 418

Stock Options Stock Liquidation Preference Option Pool 418

The Startup Lawyer

OCTOBER 9, 2010

Good luck trying to convince even the most nascent of startups to take your investment at around a $100k post-money valuation. One of the 2 partners plans to provide personal mentorship. Regardless of how well the partner can provide mentorship, it falls way short of the roster of mentors provided by typical accelerators.

Dallas 91

Dallas Seed Capital Incubator Post-Money Valuation 91

The Next Web

DECEMBER 30, 2012

Coursera is a social entrepreneurship company that partners with the top universities in the world to offer courses online for anyone to take, for free. Raising money for a startup from an angel investor : Learn pre-money and post-money valuations are.

Artificial Inteligence 156

Artificial Inteligence Founder Private Equity Ruby 156

betashop.com

OCTOBER 8, 2012

It has been awesome, flattering, and humbling to see that post went viral and has been seen by so many thousands of people — mainly aspiring entrepreneurs — and has been translated into many languages. million registered users, 7500 supplier partners, 600 team members, and a run-rate of more than $150M in sales in just 15 months.

Technical Review 108

Technical Review Technology Software Review Valuation 108

Seeing Both Sides

NOVEMBER 30, 2008

That's because the two key assumptions regarding how much money a portfolio company would require from start to finish (the exit) have changed: (1) the length of time before exit; and (2) the number of portfolio companies that would attract outside capital to lead follow-on financing rounds. Today, those financings are simply not happening.

Pre-Money Valuation 20

Pre-Money Valuation Portfolio Post-Money Valuation Valuation 20

thestartuplawyer.com

FEBRUARY 24, 2010

Your Business Partner Closer,&# was a reformatted version of a blog post titled “Keep Your Startup Co-Founder Closer&# which appeared in Ryan Roberts PC’s blog for startups and entrepreneurs, The Startup [.] He obviously never launched a startup and got shafted by a co-founder.

Cofounder 40

Cofounder Founder Preferred Stock Startup 40

Agile VC

DECEMBER 6, 2012

1) LP Bases Change Over Time – Most healthy VC firms tend to have stable relationships with the limited partners investing with them. Well at this juncture Startup X’s valuation is presumably a lot higher than it was at the Series A, maybe even 5-10x+ higher.

LP 178

LP Balance Sheet Differentiation Limited Partner 178

Board Effect

MAY 10, 2019

There’s the owner—maybe a partner or two—but unless employees are offered equity from the get-go, there’s typically not a whole lot of dilution. Cap tables are throughout these negotiations to model potential pre- and post-money valuations. Why do cap tables matter?

Cap Table 40

Cap Table Liquidation Preference Dilution Liquidity Event 40

Lightspeed Venture Partners

SEPTEMBER 23, 2012

post money valuation. Mark Cuban offered $300k for 33% of the company, implying a $900k post money valuation. implying a $600k post money valuation. The company ended up negotiating with Cuban and settled on $300k for 30% of the company, or a $1M post money valuation.

Pre-Money Valuation 163

Pre-Money Valuation Post-Money Valuation Valuation Dilution 163