Altgate

DECEMBER 16, 2010

@altgate Startups, Venture Capital & Everything In Between Skip to content Home Furqan Nazeeri (fn@altgate.com) ← Pre-Money Valuation vs Number of Founders Where Do Tech VCs Invest? The first thing I noticed was that the vast majority (76%) of financings have a “one x&# preference.

Liquidation Preference 39

Liquidation Preference Pre-Money Valuation Term Sheet Valuation 39

Feld Thoughts

FEBRUARY 9, 2016

I learned this lesson 127 times between 2000 and 2005. I started investing in 1994 and while there was some bumpiness in 1997 and again in 1999, the real pain happened between 2000 and 2005. I watched, participated, and suffered through every type of creative financing as companies were struggling to raise capital in this time frame.

Cap Table 70

Cap Table Down Round Liquidation Preference Founder 70

500hats.com

AUGUST 2, 2012

Other angel investors and smaller funds also copied this innovation, and many of these new Micro-VC fund managers (like me) came from operational backgrounds at companies like PayPal/eBay, Yahoo, Amazon, or Google, rather than finance backgrounds from investment banking or Wall Street. and no, we didn’t.

Silicon Valley 74

Silicon Valley Early Stage Venture Capital Valuation 74

Feld Thoughts

DECEMBER 28, 2010

On the heels of all the noise around Groupon’s $ 100m financing at a $7.5b (billion) post valuation, I thought I’d put out a call for “old VC term sheets – prior to 1990.&#. My partner Jason Mendelson and I are working on a book titled Venture Financings: How To Look Smarter Than Your Lawyer and VC.

Term Sheet 118

Term Sheet Search Finance Valuation 118

genylabs.typepad.com

SEPTEMBER 24, 2011

Member since 01/2005. I wont bother going into details on start-up financing terms ( see this post for an overview of typical VC terms) except to say if you dont know and understand: the firms cap table and valuation. September 2011. August 2011. April 2011. March 2011. February 2011. January 2011. December 2010. Assistant Edge.

Equity 40

Equity Technical Review San Jose Stock 40

The Equity Kicker

JULY 8, 2019

This is what brings us to the second big difference: the cost of Applied Venture is too large to finance from a standard VC management fee. . Different funds finance the cost of these teams with a differing weighting of asking portfolio companies to pay for services, larger than normal management fees, and reduced compensation for partners.

Portfolio 84

Portfolio LP Venture Capital Partner 84

A Smart Bear: Startups and Marketing for Geeks

OCTOBER 23, 2012

And the same thing happened after we sold IT WatchDogs in 2005. So it IPO’ed at a $13b valuation but has dropped month-over-month to one-fourth that value and appears to be in “constant pivot mode” while they try to figure out a new, massive market for which their existing infrastructure is an asset.

IPO 240

IPO Flash Bootstrapping Private Equity 240

Ben's Blog

JULY 16, 2013

You probably thought that valuations would be roughly the same as they were the last time you raised money. 3/31/2005: 22.8. And those are big companies with real earnings, so you can imagine how a private company’s valuation might fluctuate. In June of 2000, I raised money at an $820M post-money valuation. Things change.

Down Round 73

Down Round Marketing Preferred Stock Post-Money Valuation 73

Both Sides of the Table

APRIL 14, 2010

Many companies that are raising B or C venture capital rounds right now raised their initial money in 2005-2008. Talk openly about valuation and what they’ll accept so you know what you’re dealing with. If you want to raise venture capital more easily the advice could be quite practical and counter-intuitive. It is 2010.

Venture Capital 289

Venture Capital Liquidation Preference Common Stock Pre-Money Valuation 289

Both Sides of the Table

SEPTEMBER 14, 2010

But knowing the right people and knowing a market only works well for angel investors in bullish tech markets in which IPO’s happen quickly (97-99) or where larger companies are actively scooping up little tiny companies at sub $50 million valuations to drive innovation (05-08, 10-?). Let’s call these cards 1996-99 and 2005-08.

Angel Investor 152

Angel Investor Cap Table Early Stage Deal Flow 152

Both Sides of the Table

SEPTEMBER 15, 2010

But knowing the right people and knowing a market only works well for angel investors in bullish tech markets in which IPO’s happen quickly (97-99) or where larger companies are actively scooping up little tiny companies at sub $50 million valuations to drive innovation (05-08, 10-?). got picked up early without raising a lot of VC.

Angel Investor 284

Angel Investor Early Stage Cap Table Deal Flow 284

Cracking the Code

MARCH 23, 2007

The following chart compare the impact of the tsunami in 2005 on the website traffic vs. the viral marketing campaign that they launched in 2007 with Popular Media. Detailed SaaS Spreadsheet (Valuation and CAC benchmark). SaaS 13 Index Valuation. Yahoo Finance. S&M productivity (CAC ratio) for the SaaS 13 Index.

Software Review 48

Software Review Viral Media Marketing 48

Both Sides of the Table

OCTOBER 1, 2009

style euphoria that swept the Valley beginning in 2005. There have also been many high profile financings of infrastructure players to support these gaming platforms including Offerpal Media, SuperRewards (bought by AdKnowledge), Gambit and more recently LA-based Sometrics. The iPhone success is more profound than just iPhone apps.

IPO 255

IPO Investment Bankers Venture Capital Marketing 255

This is going to be BIG.

DECEMBER 26, 2011

It feels a lot like NYC as a whole did back in 2005--a handful of relatively disconnected folks, a few marquee companies and a whole lot of pent up interest in doing something impactful in the local community. Android Backlash. Credit cards "just work" and peer to peer transactions just aren't big enough to bootstrap a network.

Technology 116

Technology Valuation Community Restful 116

Professor VC

FEBRUARY 12, 2015

When I pulled out the May 30, 2005 issue with Real Estate Gold Rush on the cover and posting the question "Inside the hot-money work of housing speculators, condo-flippers, and get-rich-quick schemers. I''m not about to compare the current state of private company valuations to the real estate bubble or even the dot-com bubble.

Las Vegas 28

Las Vegas IPO Pre-Money Valuation Valuation 28

Both Sides of the Table

MAY 23, 2012

Yes, it’s true that FOMO (fear of missing out) is driving some irrational behavior and valuations amongst uber competitive deals and well-financed VCs. Try charging customers for your product when you have 12 competitors giving the product away free finances by $20 million of VC. The Exit Problem.

Venture Capital 347

Venture Capital Technical Review LP Mobile 347

Ben's Blog

JULY 16, 2013

You probably thought that valuations would be roughly the same as they were the last time you raised money. 3/31/2005: 22.8 And those are big companies with real earnings, so you can imagine how a private company’s valuation might fluctuate. In June of 2000, I raised money at an $820M post-money valuation. Things change.

Marketing 36

Marketing Preferred Stock Post-Money Valuation Down Round 36

Altgate

DECEMBER 16, 2010

The data set is about 1,200 rounds of financing for US tech companies that completed the 2010 CompStudy survey. I also looked at average valuation across the segments and you can find that chart here. So, for example, $88 million was invested in Software companies with the round gross proceeds of less than $1 million (i.e.

Liquidation Preference 59

Liquidation Preference Early Stage Venture Capital Later Stage 59

Professor VC

JUNE 20, 2011

Financing, that is.I One truth of start-up financing is that it generally takes twice as long and twice as much money to accomplish your milestones. Most companies dont come close to their rose colored financial models prepared when going out for Series A financing. ProfessorVC. The last blogger in Silicon Valley.

San Jose 28

San Jose Angel Investor Term Sheet Venture Capital 28

reidhoffman.org

NOVEMBER 12, 2013

Friendster’s valuation set the tone for the entire social networking space. You may happen to emphasize the right points that pique an investor’s interest, but you shouldn’t leave your financing up to chance. Second, understand the broader financing climate. Steer into your investors’ objections.

Entrepreneur 111

Entrepreneur Viral Revenue Networking 111

Bryce Dot VC

SEPTEMBER 28, 2015

What that meant is that six companies a year could achieve a hundred million in revenue or a billion in valuation. Back in 2005 we started a venture firm called OATV, O’Reilly Alpha Tech Ventures, myself, my partner Tim O’Reilly, and my partner Mark Jacobson. And, that those six companies drove 95% of the returns for our industry.

Venture Capital 40

Venture Capital Valuation Los Angeles Chicago 40

Steve Blank

FEBRUARY 26, 2020

Btw, the definition of each startup financing stage has changed in the last decade. What was a Series A round in 2005 is now a pre-seed or seed round. As an example, $1 of revenue for a direct to consumer company is worth ~$1 in valuation at scale (Zappos was sold for $1B when they had $1B in sales). Valuations.

Cofounder 433

Cofounder Seed Stage Valuation Metrics 433

www.paulgraham.com

OCTOBER 23, 2010

The sixth largest center for oil, or finance, or publishing?Whatever If you get an offer from a reputablefirm at a reasonable valuation with no unusually onerous terms,just take it and get on with building the company. [ 8 ]Some VCs will offer you an artificially low valuation to seeif you have the balls to ask for more.

Startup 108

Startup Software Review Hiring Silicon Valley 108

www.currentlyobsessed.com

MAY 28, 2010

Valuation is an important aspect of VC deal terms, and a major determinant of your ultimate outcome. I unexpectedly found that it was more helpful to think about the company valuation as an output variable in the fund-raising equation. The net effect was more money raised, higher valuation and the same percentage of equity sold.

Valuation 42

Valuation Channel Pre-Money Valuation Term Sheet 42

mashable.com

MARCH 7, 2011

Partners W3 EDGE Concentric Sky Rackspace Intridea Dynect DNS Webtrends Global Syndication Partners ABCNews Forbes Metro USAToday Yahoo ©2005-2011 Mashable, Inc. Reproduction without explicit permission is prohibited. All Rights Reserved. startupcto

Developer 93

Developer HTML API Ruby 93

Both Sides of the Table

AUGUST 9, 2011

Valuations were enormous relative to progress in companies. Companies with less than $2 million in revenue were asking for $50-60 million valuations and getting them. I spent my days meeting companies, figuring out what areas of the market interested me and trying to get a sense for how VCs thought about fair valuations.

Stock 305

Stock Technical Review Marketing Greece 305

www.businessinsider.com

SEPTEMBER 6, 2012

This Chart Shows Why VCs Are Willing To Give Hyped Startups Absurd Valuations. Many if not most seed investments in startups these days are done in the form of convertible debt, which is a loan that can convert to equity in a subsequent financing. But the convertible cap has increasingly been used as a guide for valuation.

Silicon Valley 54

Silicon Valley Startup Valuation Venture Capital 54

allthingsd.com

AUGUST 24, 2012

Fenwick VC Survey: Q2 Funding Valuations Shoot the Moon. According to Fenwick & West’s latest Silicon Valley Venture Capital Survey , fundings in the second quarter of this year showed the highest valuation increases in more than five years. © 2005-2012 Dow Jones & Company Inc. August 23, 2012 at 7:00 am PT.

Valuation 45

Valuation Technical Review Silicon Valley Software Review 45

Startup Lessons Learned

JUNE 19, 2019

In 2005, he retired to focus on giving back, beginning by teaching technology entrepreneurship courses at Stanford, becoming a trustee at the University of Pennsylvania (which he attended undergrad), and funding cancer research with his wife. We'll invest at a $50 million valuation. It's literally impossible. That sounds ideal.

Silicon Valley 159

Silicon Valley Lean Venture Capital Pre-Money Valuation 159

www.vccafe.com

MARCH 11, 2013

Hundreds of startups featured since 2005, will yours be next? easy business finance software. YCombinator Series AA Equity Financing Documents. Seed Stage Valuation Guide. VC Cafe highlights everything you need to know from hosting your code in hackathons to open source legal docs. Seed Startups. Startup Threads.

Software Review 53

Software Review Technical Review Startup 53

Both Sides of the Table

SEPTEMBER 17, 2017

I believe the massive valuation increases in cryptocurrencies we’ve witnessed of late are not based on any fundamentals other than speculation and a drive for a quick profit by many who have gained from the market hype. Many of these countries hadn’t been big stock speculators but the gains of the US Internet companies were too tempting.

Government 280

Government Distribution Stock United States 280