ReadWriteStart

OCTOBER 7, 2010

So at any point, if you are trying to raise money, and you are hearing from investors that you are too early and have too little validation, it may be a good thing. As a thumb rule, try to get enough validation so that you can get to at least a $2 million pre-money valuation before raising equity capital. Well, I don't.

Valuation 119

Valuation Silicon Valley Pre-Money Valuation Bootstrapping 119

Gust

OCTOBER 12, 2011

To provide some reference points, I surveyed thirteen angels groups in North American to determine their recent experience in negotiating the pre-money valuation of pre-revenue companies. See the 2010 data reported here: Current Pre-money Valuations of Pre-revenue Companies. Silicon Valley.

Angel Groups 125

Angel Groups Valuation Pre-Money Valuation St. Louis 125

Gust

MAY 15, 2015

Entrepreneurs seem genuinely surprised to find that investors in Peoria or Little Rock are not willing to invest in startup companies at Silicon Valley prices. After all, they just read in TechCrunch that investors funded a company similar to theirs at an $8 million pre-money valuation! Guess again!

Pre-Money Valuation 70

Pre-Money Valuation Silicon Valley Valuation Startup 70

Gust

MAY 15, 2015

Entrepreneurs seem genuinely surprised to find that investors in Peoria or Little Rock are not willing to invest in startup companies at Silicon Valley prices. After all, they just read in TechCrunch that investors funded a company similar to theirs at an $8 million pre-money valuation! Guess again!

Pre-Money Valuation 70

Pre-Money Valuation Silicon Valley Valuation Startup 70

Lightspeed Venture Partners

OCTOBER 7, 2012

I’ve been writing up reviews of this season’s Shark Tank pitches from a silicon valley VCs perspective. As Cuban pointed out, this is a “down round” Zomm is seeking $2M for 10% of the company, implying an $18M pre money valuation today. BACK 9 DIPS. The entrepreneur was clearly desperate.

Technical Review 110

Technical Review Technical Cofounder Valuation Pre-Money Valuation 110

SiliconHills

OCTOBER 22, 2013

The deals, with a median investment round of $590,000, had pre-money valuations of $2.5 Austin Central Texas Angel Network CTAN Halo Report Silicon Valley Bank Texas' And 74 percent of the deals were syndicated.

Angel Groups 77

Angel Groups Pre-Money Valuation Silicon Valley Texas 77

Both Sides of the Table

JULY 27, 2014

(not in video but late stage valuations have grown 24% compounded years for the past 4 years which is higher than any segment. Four years ago people paid $66m median pre-money valuation and are now paying $155m. This can’t all be driven by increased company performance).

Valuation 309

Valuation Pre-Money Valuation Later Stage Non-Compete 309

Lightspeed Venture Partners

NOVEMBER 19, 2012

Season 4 of week 10 of Shark Tank was interesting because two of the pitches were for internet businesses that I could imagine seeing in my day job as a Silicon Valley Venture Capitalis t. Interestingly, this new deal actually lowered the pre money valuation for the company.

Pre-Money Valuation 166

Pre-Money Valuation Alabama Valuation Churn Rate 166

Berkonomics

NOVEMBER 4, 2016

For example, $500,000 maximum value to each element yields either a maximum pre-money enterprise valuation of $$2 million or $2.5 Valuations are higher in Silicon Valley, Silicon Beach, New York and the North Carolina corridor than in Oklahoma City, Kansas City or Miami.

Valuation 48

Valuation North Carolina Oklahoma City Silicon Valley 48

Professor VC

JANUARY 17, 2008

The last blogger in Silicon Valley. I was on a panel earlier this week with several other investors from Angel Groups in the Valley. The panel was a typical Silicon Valley shmoozefest hosted at a law firm with about 75+ attendees. He also said they typically only invest at a $1 million pre-money valuation or less.

Pre-Money Valuation 28

Pre-Money Valuation Angel Investor Angel Groups Valuation 28

www.mattbartus.com

DECEMBER 9, 2012

A View from the Valley. Perspectives on issues affecting founders, startups and investors from a veteran startup lawyer in Silicon Valley. How to pump up your VC valuation. Take a look at the numbers: Pre-Money. One possibility is to negotiate a higher valuation and offer warrants (i.e., Post-Money.

Warrant 40

Warrant Valuation Pre-Money Valuation Term Sheet 40

Professor VC

FEBRUARY 12, 2015

I doubt Aileen Lee of Cowboy Ventures believed that a horse with a horn existed when she wrote Welcome To The Unicorn Club: Learning From Billion-Dollar Startups in late 2013, but she probably had no idea that it would become a hot buzzword in Silicon Valley and hit the cover of mainstream business press, Fortune Magazine.

Las Vegas 28

Las Vegas IPO Pre-Money Valuation Valuation 28

Pascal's View

AUGUST 21, 2011

As Primack points out in his post: “Law firm Fenwick & West reports that valuations for Silicon Valley venture financings rose 61% in Q4 2010. This was the sixth straight quarter in which their barometer showed an average valuation increase, including a 28% bump the prior quarter.

Valuation 50

Valuation Social Media Media IPO 50

crowdSPRING Blog

APRIL 26, 2013

Don’t let Silicon Valley fool you—millenials are the least entrepreneurial generation | Quartz – [link]. Q1 Venture Capital Spending & Number Of Deals Down, M&A Activity Drops 44 Percent And Pre-Money Valuations Plummet – [link]. ” – [link]. ” – [link].

Social Media 90

Social Media Small Business Design Media 90

Hippoland

AUGUST 31, 2018

So, I thought it might make sense to take a step back and talk about all the stages of early stage fundraising here in the Silicon Valley. In early stage investing, at least in Silicon Valley, there are basically 4 stages: pre-seed, seed, post-seed (or pre-A), and series A.

Pre-Money Valuation 90

Pre-Money Valuation Valuation Silicon Valley Early Stage 90

venturehacks.com

OCTOBER 21, 2010

If you don’t keep your eyes on the option pool while you’re negotiating valuation, your investors will have you playing (and losing) a game that we like to call: Option Pool Shuffle You have successfully negotiated a $2M investment on a $8M pre-money valuation by pitting the famous Blue Shirt Capital against Herd Mentality Management.

Option Pool 68

Option Pool Pre-Money Valuation Dilution Warrant 68

Hippoland

AUGUST 31, 2018

So, I thought it might make sense to take a step back and talk about all the stages of early stage fundraising here in the Silicon Valley. In early stage investing, at least in Silicon Valley, there are basically 4 stages: pre-seed, seed, post-seed (or pre-A), and series A.

Pre-Money Valuation 48

Pre-Money Valuation Valuation Silicon Valley Early Stage 48

Professor VC

JULY 16, 2012

In the meantime, I ran across the recent Halo Report on angel group investing prepared by Silicon Valley Bank. With deal velocity so great in Silicon Valley along with the large numbers of experienced entrepreneurs and investors, there is little need to associate with an angel group. Median pre-money valuation of $2.5

Angel Groups 36

Angel Groups Silicon Valley Pre-Money Valuation Alaska 36

www.paulgraham.com

APRIL 28, 2010

2 ] When you negotiate terms with a startup, there are two numbers youcare about: how much money youre putting in, and the valuation ofthe company. The valuation determines how much stock you get. Ifyou put $50,000 into a company at a pre-money valuation of $1million, then the post-money valuation is $1.05

Angel Investor 63

Angel Investor Syndicate Syndication Dilution 63

Lightspeed Venture Partners

SEPTEMBER 23, 2012

Last week I gave a Silicon Valley VC’s take on the company pitches on Shark Tank as the new season four started, and it was well received. The right number to focus on is pre money valuation as that is how an investor is valuing the company before the investment. This makes intuitive sense.

Pre-Money Valuation 163

Pre-Money Valuation Post-Money Valuation Valuation Dilution 163

Startup Lessons Learned

JUNE 19, 2019

Meanwhile, we recently talked with him about his thoughts on 35 years in Silicon Valley, why the skill sets of venture capitalists and CEOs are so different, and why telling a good story about your product is so crucial. You’ve been in Silicon Valley since the early days. I’m sure you have unique perspective on that.

Silicon Valley 159

Silicon Valley Lean Venture Capital Pre-Money Valuation 159