Gust

JULY 23, 2014

So, putting all that together, to get a pitch meeting with me, an entrepreneur would probably have the best result with the following strategy: Read up on the kinds of investments I make, and the kinds of opportunities I am seeking. If you have a co-founder, see if you can bring him/her along with you; I like to meet the key players.

Angel Investor 153

Angel Investor Elevator Pitch Pre-Money Valuation Technical Review 153

Lightspeed Venture Partners

OCTOBER 29, 2012

The company sought to raise $125,000 for 25% of the comapny, implying a $375,000 pre money valuation. Unsurprisingly, all the sharks passed, based on market size and valuation expectations. The founder, Shelton Wilder (in the middle below), sought to raise $60,000 for 20% of the company to build inventory.

Pre-Money Valuation 97

Pre-Money Valuation Offshore Valuation Cofounder 97

YoungUpstarts

SEPTEMBER 11, 2013

By Alan Lobock, co-founder, Worthworm. As an entrepreneur, you’ll face a bevy of challenges. What is a pre-money valuation and why should I care? What is a pre-money valuation and why should I care? How does my pre-money valuation affect negotiations with potential investors?

Pre-Money Valuation 133

Pre-Money Valuation Valuation Angel Investor Cofounder 133

Both Sides of the Table

MAY 30, 2018

One of the hardest things about the fund-raising process for entrepreneurs is that you’re trying to raise money from people who have “asymmetric information.” As an entrepreneur it can feel as intimidating as going to buy a car where the dealer knows the price of every make & model of a car and you’re guessing at how much to pay.

Valuation 324

Valuation Post-Money Valuation Pre-Money Valuation Cofounder 324

Both Sides of the Table

JUNE 5, 2015

In the old days VCs funded off of a “pre-money” valuation. If you add the pre-money valuation (let’s say $8 million) to the amount of money you’re raising (let’s say $2 million) you get the post-money valuation. Those are the big three. No problem.

Pre-Money Valuation 150

Pre-Money Valuation Option Pool Post-Money Valuation Dilution 150

Gust

APRIL 11, 2014

Let’s get right down to business: Dilution of founders’ and other early shareholders’ equity in startups is frequently a subject of intense interest and debate. Suppose it raises $2 million at a $6 million pre-money valuation. Expert commentators including David S.

Dilution 162

Dilution Equity Pre-Money Valuation Prospectus 162

Feld Thoughts

JULY 29, 2011

Finance Friday’s gets off the ground with today’s post by introducing you to an imaginary startup, the entrepreneurs that we’ll being following throughout the series, and their first challenges: splitting up the founders’ equity and addressing the case where one of the founders provides the initial seed capital for the business.

Equity 137

Equity Finance Denver Pre-Money Valuation 137

Berkonomics

JANUARY 7, 2021

Think of startups and early stage businesses whose entrepreneurs you know. One: The entrepreneur. First, there is the entrepreneur , the visionary, and force behind the venture from start to finish. Two: Co-management. So, co-management is the second group to share in the bounty upon a liquidity event.

Liquidity Event 96

Liquidity Event Pre-Money Valuation Cofounder Initial Public Offering 96

Berkonomics

DECEMBER 19, 2013

In the process of raising funds to create and develop a business, entrepreneurs make many statements to those they seek to attract as investors. When will the company run out of money if the development of the enterprise is at a slower rate than expected? How much skin do you and your fellow founders have in the game ?

Pre-Money Valuation 105

Pre-Money Valuation Liquidity Event Cofounder Valuation 105

Berkonomics

JUNE 12, 2014

First, there is the entrepreneur , the visionary, and force behind the venture from start to finish. Few entrepreneurs can do it alone, with subordinate hired help and no expert management to share the burdens, skill sets and efforts involved in growing the enterprise. Email readers, continue here.]

Liquidity Event 85

Liquidity Event Pre-Money Valuation Cofounder Initial Public Offering 85

Gust

NOVEMBER 4, 2011

Entrepreneurs and investors who have spent any time dealing with convertible debt seed financing transactions are likely to have encountered the subject of valuation caps. The cap is irrelevant if the next equity financing is at a valuation below the cap amount.) was spun out, and the valuation was set by that financing round.

Valuation 98

Valuation Pre-Money Valuation Merger Vesting 98

Startup Lessons Learned

JUNE 19, 2019

Andy Rachleff co-founded the venture capital firm Benchmark Capital in 1995. So we made a pact among the founders that when any of us reached the point that we weren't willing to go 110%, you had to opt out. Employees are not entrepreneurs. And only the really great entrepreneurs get this--but there are few really great ones.

Silicon Valley 159

Silicon Valley Lean Venture Capital Pre-Money Valuation 159

Berkonomics

JANUARY 28, 2021

I can’t tell you how many times I’ve walked away from deals where the entrepreneur insists on a start-up pre-money valuation that is so high, no angel could expect to make a return upon the investment, even with a reasonable sales price for the company down the road. Lessons founders learned. Here’s the “what.”.

Early Stage 62

Early Stage Valuation Pre-Money Valuation Cofounder 62

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

Feld Thoughts

JULY 14, 2015

The term sheet converts all the convertible debt into a post-money valuation of $100, essentially making the convertible debt worthless. The new money comes in at a pre-money valuation of $100, but includes a complete refresh of founder equity to 40% of the company. Sure – it happens.

Recapitalization 70

Recapitalization Pre-Money Valuation Post-Money Valuation Angel Investor 70

Scott Edward Walker

APRIL 9, 2012

As a result, the pendulum has swung dramatically in the founders’ favor, and the issuance of convertible notes for seed financing has never been more prolific. and (iii) what securities laws do founders need to worry about in connection with the issuance of convertible notes? This post was originally published on TechCrunch.]

Preferred Stock 87

Preferred Stock Finance Common Stock Liquidation Preference 87

Both Sides of the Table

FEBRUARY 25, 2010

A reminder that it is important for all entrepreneurs is to remember to be careful about “deal drift.” I think the perfect saying to have as a reminder is “time is the enemy of all deals,” or as my wife is all too tired of hearing me say, “Don’t pop the champagne until the ink is dry on the contract and the money is in the bank.”.

Technical Review 301

Technical Review Term Sheet Due Diligence Venture Capital 301

www.currentlyobsessed.com

MAY 28, 2010

Currently Obsessed Joe Heitzeberg – Entrepreneur | Tech Geek | MBA Home About Me Joe Heitzeberg is an internet entrepreneur who has started and sold two companies. Entrepreneurs are generally too focused on pre-money valuation, and VCs know this. For example, liquidation prefs. Future value is key.

Valuation 42

Valuation Channel Pre-Money Valuation Term Sheet 42

Agile VC

APRIL 17, 2011

Kayak was started here in my backyard of Boston… co-founder & CTO Paul English and the product/engineering team is based here in Concord MA. Co-founder & CEO Steve Hafner and the business team are based in Norwalk, CT. Pre-IPO Funding History: Kayak has raised approximately $235M in VC funding to date.

Pre-Money Valuation 113

Pre-Money Valuation Liquidation Preference Dividend Common Stock 113

Agile VC

MAY 26, 2011

Many assume it was a cakewalk, based on the success LinkedIn has enjoyed over time and the current stature of our founder/CEO Reid Hoffman (now Chairman). I also joke with Reid Hoffman that this was back in the days before he was “Reid” Reid’s an incredible entrepreneur, startup investor, and human being.

Term Sheet 178

Term Sheet Silicon Valley Technical Review Social Network 178

Both Sides of the Table

APRIL 14, 2010

It’s meant to be a bit provocative but the reality is that I give this advice to entrepreneurs all the the time and I usually leave the “e&# off of the end. I learned all of this myself on your side of the table raising money at my first company. management, founders, angel investors) get any money.

Venture Capital 289

Venture Capital Liquidation Preference Common Stock Dividend 289

thestartuplawyer.com

FEBRUARY 24, 2010

He obviously never launched a startup and got shafted by a co-founder. He obviously never launched a startup and got shafted by a co-founder. Entrepreneurs often believe their startup company faces legal threats from only external sources. You can start by examining every aspect of the co-founder relationship.

Cofounder 40

Cofounder Founder Preferred Stock Startup 40