Remove Cofounder Remove Partner Remove Pre-Money Valuation
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Want to Know How First Round Capital was Started?

Both Sides of the Table

They have totally changed the way you run a VC firm, investing heavily in systems & events for their founders that are pushing the boundaries of the way our industry works. The discussion with Howard Morgan starts off by acknowledging Josh Kopelman as a co-founder of First Round Capital. I'm a huge fan of this innovation.

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Valuations 101: Scorecard Valuation Methodology

Gust

Diversification across industry sectors is not as easily achieved for angels as could be accomplished in public markets, but can be achieved by co-investing with trusted angel colleagues in a broader set of businesses. Pre-money valuation varies with the economy and with the competitive environment for startup ventures within a region.

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The Challenge Of Figuring Out Your Pre-Money Valuation

YoungUpstarts

By Alan Lobock, co-founder, Worthworm. Sometimes the list of challenges may feel never ending – from writing the business plan to finding the right partner – but one of the single most important challenges entrepreneurs face is calculating a realistic, defensible pre-money valuation. .

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How to Talk About Valuation When a VC Asks

Both Sides of the Table

What was the post money on your last round (and how much capital have you raised)? It’s not uncommon for a VC to ask you how much capital you’ve raised and what the post-money valuation was on your last round. Every VC has a story where they did the flat round anyways and the founder said, “I really don’t mind!

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Keep It Under Your Hat: Valuation Caps and the $650 Million Sale of MySpace for $125 Million

Gust

In brief, a cap acts to place a limit on the conversion price of a convertible note such that investors are guaranteed a minimum number of shares for their bridge loans if the startup does a priced equity round at a high pre-money valuation – “high” meaning above the cap, which is often a heavily negotiated term. (The

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Lean Startup Conference Speaker Andy Rachleff on his 35 years in Silicon Valley, Wealthfront and telling stories

Startup Lessons Learned

Andy Rachleff co-founded the venture capital firm Benchmark Capital in 1995. It's the only always-equal partnership, and the only way you can have an always-equal partnership, where new people join as equal partners, is for the older partners to get out of the way when they're not as productive. That was not the plan.

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The Option Pool Shuffle

venturehacks.com

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.