Both Sides of the Table

JUNE 30, 2016

So the temptation would be to ask for $5 million because that implies a $20 million pre-money valuation if you’re able to only give away 20% or a $15 million pre-money valuation of investors require 25%. A $15–20 million valuation sounds better than an $8 million valuation, doesn’t it?

Pre-Money Valuation 292

Pre-Money Valuation Valuation Early Stage Startup 292

Both Sides of the Table

JULY 22, 2010

I don’t feel that as a VC sneaking in nefarious terms into a term sheet that the entrepreneur doesn’t understand is a good way to build a long-term relationship nor to build a long-term reputation but this does happen and more frequently than we all would like. I turned them down. They were nonplussed.

Valuation 405

Valuation Liquidation Preference Pre-Money Valuation Term Sheet 405

Gust

NOVEMBER 15, 2011

The Risk Factor Summation Method the fifth methodology for estimating the pre-money valuation of pre-revenue companies we have described in recent posts. Reputation risk. As an example, Assume the average pre-money valuation of pre-revenue companies in your area is $2.0 1 positive.

Valuation 102

Valuation Pre-Money Valuation Ohio Early Stage 102

Both Sides of the Table

JULY 23, 2014

pre-money valuation you certainly would want to exercise your right to continue investing if you had prorata rights. Because this is all VCs do and if we intend to work with all of our fellow VCs and entrepreneurs when the rain ends and the sun shines again our reputations matter greatly.

Technical Review 398

Technical Review Venture Capital Valuation Pre-Money Valuation 398

Both Sides of the Table

AUGUST 23, 2010

You blog both because you enjoy it and because it helps build your online reputation. I comment and I build awareness & reputation. At an $86 million, pre-money valuation Benchmark sure did pay up for this investment. It’s the same things you’re doing on your blog.&#. No, really.

Silicon Valley 301

Silicon Valley Pre-Money Valuation Technical Review Software Review 301

Both Sides of the Table

SEPTEMBER 5, 2012

As in, “your money into my company will convert at a 15-20% discount to the next round of capital I raise with a maximum price of $8 million pre-money valuation (or whatever the cap was).” .” What this did is set the maximum price of the deal. Convertible debt with no cap is stupid for investors.

Ratchet 354

Ratchet Liquidation Preference Equity Stock 354

YoungUpstarts

SEPTEMBER 4, 2017

For startup founders and CEO’s it’s also just as common to see them place too much focus on the amount of money raised, and the pre-money valuation, rather than the value that each investor can bring to the table. Creating a reputation as an investor who truly backs their founders can often make you an investor of choice.

Pre-Money Valuation 187

Pre-Money Valuation Seed Stage IP Deal Flow 187