Both Sides of the Table

SEPTEMBER 18, 2014

It’s like we need a finance 101 course for entrepreneurs. There were no metrics. Him: On metrics. In finance they call it “terminal value” but the truth is the price is as arbitrary at your A round as it is at your seed round. So a convertible note was easier. How will you price the next round?

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

David Teten

AUGUST 19, 2019

One of the reasons that RBI VC is growing in both feasibility and popularity is that more businesses are becoming metrics-driven , which means that investors have better line of site on their future revenues. I asked Brian Parks, Managing Partner, Bigfoot Capital, about the impact of RBI on traditional VC.

Revenue 60

Revenue Term Sheet Founder Technical Review 60

Gust

SEPTEMBER 17, 2014

It’s like we need a finance 101 course for entrepreneurs. There were no metrics. Him: On metrics. In finance they call it “terminal value” but the truth is the price is as arbitrary at your A round as it is at your seed round. Him: But when I raised my first round we didn’t know how to price the company. Your A round?

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

cdixon.org

AUGUST 3, 2012

. - For consumer startups with transactional models, e.g. e-commerce, the number of users required is often far lower because revenue is the more important metric. Hence, many early-stage consumer startups are switching to transactional models. - VCs are increasingly focusing on B2B for early-stage investments.

Bridge Financing 86

Bridge Financing Early Stage Valuation Later Stage 86