Gust

OCTOBER 16, 2012

This summer I conducted our third annual survey of the pre-money valuation of pre-revenue companies recently funded by angel groups in North America. Access to our 2010 and 2011 surveys can be found at 2011 Valuation Survey of North American Angel Investor Groups. 2012 Valuation Survey. pre-money valuation in US$ millions).

Angel Groups 169

Angel Groups Valuation Pre-Money Valuation North Dakota 169

Austin Startup

MARCH 22, 2021

In recent years we’ve seen mega-rounds of investment and sky-high valuations. billion Series D round giving the company a valuation of about $14 billion!* Find your vertical and stick to it (for a few years at least). Marketplaces are also catching the eye of investors. They raised a whopping $2.4 London) and category (e.g.

Software Review 100

Software Review San Francisco Valuation Stock 100

Austin Startup

FEBRUARY 11, 2020

Benjamin Nadareski of DrumG , which solves data ownership and a broken valuations industry. DrumG’s flagship product is the Titanium Network, which offers next-generation derivatives valuation services to a network of global financial institutions. DrumG is located in New York, London, Singapore and Bermuda.

Technical Review 62

Technical Review New Jersey Valuation Singapore 62

Austin Startup

FEBRUARY 11, 2020

Benjamin Nadareski of DrumG , which solves data ownership and a broken valuations industry The Forrest Four-Cast: February 11, 2020 One of 50 finalists for SXSW Pitch 2020 , DrumG is a global technology firm that builds and operates financial market applications and networks. DrumG is located in New York, London, Singapore and Bermuda.

Technical Review 62

Technical Review New Jersey Valuation Singapore 62

View from Seed

SEPTEMBER 14, 2021

Or is there a major disconnect between a portfolio’s valuations and the actual dollars returned to LPs? Both early- and late-stage startup valuations are currently elevated. For context, seed-stage pre-money valuations are up 24% from H1 2020 to H1 2021. How have more recent vintages performed? Source: Cambridge Associates.

Valuation 319

Valuation Pre-Money Valuation Distribution Early Stage 319

View from Seed

SEPTEMBER 14, 2021

Or is there a major disconnect between a portfolio’s valuations and the actual dollars returned to LPs? Both early- and late-stage startup valuations are currently elevated. For context, seed-stage pre-money valuations are up 24% from H1 2020 to H1 2021. How have more recent vintages performed? Source: Cambridge Associates.

Valuation 295

Valuation Pre-Money Valuation Distribution Early Stage 295

Haystack

DECEMBER 29, 2018

Also during this time, the underlying metrics in that business can change positively, potentially trapping companies to accept the initially-agreed upon valuation. by a mile, continued to soar in volume and valuation. the firm may have a right to raise up to $100B but may not call all of it). 2/ The Scooter Phenomenon.

Technical Review 165

Technical Review Venture Capital Russia China 165

VC Cafe

NOVEMBER 7, 2022

Generative AI will really become magic when it moves from 'playful' to 'useful' – we will use multiple generative AI tools at work in the future, like we use grammarly and canned responses today… AI will become more vertical, and specific per role — Eze Vidra (@ediggs) November 5, 2022.

Generative AI 195

Generative AI Artificial Inteligence API Vertical 195

Both Sides of the Table

OCTOBER 21, 2009

Pure Digital to Cisco) but that even the 2nd largest will get much lover valuations. Another big driver according to Montgomery is that the tech industry has matured and is returning to its vertically integrated roots. As a result the bigger buyers will look to fill gaps in their vertically integrated offerings.

Technical Review 241

Technical Review IPO Southern California Venture Capital 241

Version One Ventures

DECEMBER 3, 2019

We had a chance to invest in a $500K round at a $12M valuation in 2015. This was not our early-stage sweet spot and the $100M valuation felt rich. This past summer, Sonder raised $225 million at a valuation north of $1B. . And yeah, $12M felt kind of high :-). We had the chance to invest in the Series B of Shopify in 2011.

Portfolio 202

Portfolio Cap Table Early Stage Valuation 202

Cracking the Code

JANUARY 25, 2021

On the back of this momentum, Melio today announced a $110m funding round, rocketing the company to a valuation of $1.3b And he and his co-founders Ziv and Ilan made it happen: Melio’s now processing multi-billion dollar payment volumes less than two years after launch. just months after it came out of stealth.

B2B 62

B2B Cloud Europe 62

Gust

OCTOBER 12, 2011

During the summer of 2010, I developed a workshop, A New ACEF Valuation Workshop for Angels and Entrepreneurs. 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. 2011 Angel Group Valuation Survey.

Angel Groups 125

Angel Groups Valuation Pre-Money Valuation St. Louis 125

VC Cafe

MAY 18, 2022

2) Valuation multiples are always a hack proxy. Re-evaluate your valuation. A16Z offers a quick formula for startups that have comparable publicly traded companies in their markets: You can get a rough estimate for the change in your valuation by looking at leading public companies in your sector. Multiples by vertical.

Term Sheet 190

Term Sheet Startup Valuation Ukraine 190

Hippoland

JULY 24, 2016

Valuation is a nebulous topic amongst early stage startups, so I thought I’d really spell it out in detail. In short: Valuations for seed stage companies are fairly arbitrary and driven solely by supply and demand. Your startup’s valuation is not based on a proforma of your revenue. This just doesn’t happen.

Seed Stage 48

Seed Stage Valuation Vertical Demand 48

View from Seed

SEPTEMBER 14, 2021

Or is there a major disconnect between a portfolio’s valuations and the actual dollars returned to LPs? Both early- and late-stage startup valuations are currently elevated. For context, seed-stage pre-money valuations are up 24% from H1 2020 to H1 2021. How have more recent vintages performed? Source: Cambridge Associates.

Valuation 156

Valuation Pre-Money Valuation Distribution Early Stage 156

Version One Ventures

MAY 4, 2015

However, amidst all the fear and exuberance, it’s important to realize that the on-demand service model that has lifted Uber to its $40B valuation won’t work for every industry. While these ingredients certainly aren’t unique to hiring a ride, they do not cut across all industries and verticals.

Vertical 60

Vertical Demand Mobile Valuation 60

David Teten

DECEMBER 3, 2019

The reports showcase raw data, analytics, visualizations, and benchmarking statistics on the company from dozens of sources, including team, intellectual property, technology, product, financial, banking, marketing, customer, risk, valuation, and investment information.”. the Untouched Vertical. If you have one, please contact me.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Berkonomics

JANUARY 3, 2013

In examining mature software companies in vertical markets, one of my first questions is to ask for the percentage of total revenues coming from recurring sources – leased software, maintenance agreements, or monthly retainers.

Revenue 79

Revenue Software Review Vertical Valuation 79

Version One Ventures

OCTOBER 1, 2019

What was one of the highest flying start-ups with a private market valuation of $47B was brought down to Earth when trying to IPO. Vertically integrated commerce or hardware companies fall into the same category of low-margin and hard-to-scale businesses.

Valuation 116

Valuation Vertical IPO Business Model 116

The Startup Magazine

SEPTEMBER 10, 2019

Asset valuation. The concept of asset valuation may seem counterintuitive, but it is an important idea. Most financial valuation formulas value an asset by discounting the asset using the cost of capital (interest rate) to the present day. Compared to Accounting, Finance is ruthlessly forward looking.

Founder 117

Founder Valuation Dividend Startup 117

The Startup Magazine

JUNE 1, 2023

There are currently tons of “zombie” startups that have runway, but growth has slowed and they have valuations that they won’t be able to grow into. During his six years at AxleHire, Sokolovsky worked to push AxleHire into new verticals and sustainability partnerships.

Early Stage 111

Early Stage Los Angeles Silicon Valley Cofounder 111

Hunter Walker

MAY 4, 2014

Not every company is raising money at the valuation you modeled. New VCs are vulnerable to fashionable verticals. Our strategy isn’t to necessarily be contrarian but we decided there were certain verticals that we weren’t going to pursue in 2013. And then a little thing called “reality” hits.

Software Review 100

Software Review Vertical Seed Stage Portfolio 100

VC Cafe

APRIL 20, 2022

Six months ago I published a post on VC Cafe titled, the state of creative automation , diving into vertical applications of AI on content creation of all sorts; from text (GPT-3 and the likes) to Synthetic video (powered by companies like HourOne). Anything World , a Uk based startup is also working in a similar space.

Audio 185

Audio Algorithm Advertising Video 185

Startup Professionals Musings

AUGUST 5, 2013

At this stage you were expecting to be working on creating a good business valuation to attract future buyers, or at least funding college accounts for your kids. Instead of selling your services to everyone, expand your services “vertically” by targeting industries where you’ve already been successful.

Entrepreneur 234

Entrepreneur Vertical Reputation Valuation 234

David Teten

SEPTEMBER 23, 2017

Close to 80% responded that manual processes, such as tracking down support, preparing reports and pulling data from different sources, are the biggest pain points they face in the valuation process. The VC Software Stack — the Untouched Vertical. Kushim , Totem , and VisibleVC focus on serving this need among VCs.

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

Haystack

JULY 8, 2018

After reflecting on it for a day, I began to understand why — even though this topic has been written about many times, “technology” as a sector and industry now has gone from vertical to horizontal, entirely pervasive across industries, across sectors, across geographies and cultures.

Early Stage 95

Early Stage Dilution Private Equity Common Stock 95

Startup Professionals Musings

JULY 6, 2012

At this stage you were expecting to be working on creating a good business valuation to attract future buyers, or at least funding college accounts for your kids. Instead of selling your services to everyone, expand your services “vertically” by targeting industries where you’ve already been successful.

Startup 236

Startup Vertical Reputation Valuation 236

Steve Blank

NOVEMBER 12, 2009

Not just because we can command a 3-4x step up in valuation if we find product/market fit pre [.] Reply A View Up the Skirt of “Lean Startup,&# JumpPost « Jordan Cooper's Blog , on December 21, 2009 at 12:29 pm Said: [.] We’ve been inspired by Steve Blank and the Customer Development / lean startup model.

Venture Capital 209

Venture Capital Silicon Valley RSS Hockey Stick 209

www.pakman.com

SEPTEMBER 27, 2012

But if your service attracts particular verticals of content engagement, not all content is created equal, and some is much more valuable than others. Much of the valuations around the consumer web are rationalizing, and because of that, investors are once again focused on understanding business models. Andres Moran.

Social Media 47

Social Media Vertical Advertising Distribution 47

Haystack

JANUARY 12, 2020

As valuations have gone up early, the cost of ownership has also risen, and in an early-stage fund where the loss ratio is likely to be much higher, high ownership has been increasingly important to these funds.

Seed Stage 106

Seed Stage Cram Down Early Stage Cofounder 106

Haystack

NOVEMBER 12, 2018

The behavior is logical: Private market valuations have felt, on the whole, dislocated from revenue multiples and public markets, so a larger acquirer has many incentives to wait to get as close to the market price for an asset before making a bid. Qualtrics focuses on experience data, SAP focuses on operational data.

Acquisition 105

Acquisition Utah IPO Venture Capital 105

www.businessinsider.com

SEPTEMBER 6, 2012

This Chart Shows Why VCs Are Willing To Give Hyped Startups Absurd Valuations. If the convertible debt has a " valuation cap " feature, the price at which the investors debt converts into shares has a maximum. The whole point is to provide a fast, easy form of financing that avoids wrestling over valuation. Jobs at BI.

Silicon Valley 54

Silicon Valley Startup Valuation Venture Capital 54

Hunter Walker

DECEMBER 24, 2018

BuildingConnected , a leading construction tech SaaS startup, was acquired for $275m as part of Autodesk’s push into the vertical. Power laws drive venture fund outcomes, but your fund size and ownership targets influence how outsized the outliers need to be.

Cap Table 96

Cap Table Seed Stage Acquisition Vertical 96

Software By Rob

JULY 1, 2010

For a startup, this means avoiding “me too&# products, staying away from horizontal niches, solving a pain-point, and targeting a vertical niche. The lesson: stick to vertical niches. The lesson: build a product that does not require customizations, and completely automate your order fulfillment process.

Software Review 54

Software Review RSS Startup Vertical 54

Hunter Walker

NOVEMBER 19, 2017

While Rafat’s expertise is concentrated in media (he started and sold Paid Content and now runs vertical travel startups Skift), the statements above apply generally (we’re investors in theSkimm and Cheddar, so clearly believe there is a place for venture here).

Media 48

Media Vertical Venture Capital Valuation 48

Hunter Walker

SEPTEMBER 22, 2014

Often these funds are attempting to build out a reputation or gain exposure to a new vertical. And for seed funds like ours, it definitely drives valuations up somewhat since large multistage funds tend to be ownership percentage sensitive more so than price sensitive. 2) Larger Funds Buying Up Early to Outbid Other Funds Later.

Later Stage 95

Later Stage Valuation Semantic Institutional Investors 95

Steve Blank

SEPTEMBER 14, 2009

Underwriters realized that as long as the public was happy snapping up shares, they could make huge profits on the inflated valuations (regardless of whether or not the company should have ever been public.) The valuations for acquisitions were nothing like the Internet bubble, but there was a path to liquidity, difficult as it was.

Silicon Valley 217

Silicon Valley IPO Technical Review Venture Capital 217