Startup Professionals Musings

SEPTEMBER 6, 2010

Once you have a potential investor excited about your team, your product, and your company, the investor will inevitably ask “What is your company’s valuation?” How much is NewCo worth to investors at this point (pre-money valuation)? This is the most concrete valuation element, usually called the asset approach.

Valuation 234

Valuation Pre-Money Valuation NPV Startup 234

Hunter Walker

JUNE 9, 2023

My friends at Weekend Fund recently put out a round-up newsletter of some investor responses to the question “ Do Valuations Matter? They view valuation as an important guardrail in evaluating an investment opportunity. Like NEA, Homebrew takes an ownership-driven approach to investing.

Valuation 71

Valuation Seed Stage Portfolio Framework 71

Gust

NOVEMBER 18, 2012

Once you have a potential investor excited about your team, your product, and your company, the investor will inevitably ask “What is your company’s valuation?” How much is NewCo worth to investors at this point (pre-money valuation)? This is the most concrete valuation element, usually called the asset approach.

Valuation 187

Valuation Pre-Money Valuation NPV Intellectual Property 187

Berkonomics

AUGUST 24, 2023

We have previously made the case that professional investors demand more in the form of restrictive covenants and lower valuations. Each of these companies needed more cash than professional angel investors were willing or able to provide, and we turned to the venture community for larger investments.

Covenant 118

Covenant Angel Investor Valuation Later Stage 118

www.seriesseed.com

DECEMBER 9, 2012

Series Seed Financing Documents Blog. Series Seed Financing Documents. Listed below are links to weblogs that reference Series Seed Financing Documents : 1 Reblog. Sets the valuation at the time of the investment. Ted: Great service to the startup community! SeriesSeed.com. Blog Archives. Reblog (1). Great effort!

Finance 40

Finance Term Sheet Vesting LLC 40

Berkonomics

AUGUST 3, 2023

Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). And even with the significant cost of credit card debt, many entrepreneurs aggressively use existing cards to finance a startup.

Private Equity 118

Private Equity Valuation Cap Table Accredited Investor 118

David Teten

JANUARY 19, 2021

His work on VC and small communities can be found at greatercolorado.vc/blog. Yes, via conversion rights at a valuation cap. Yes, via conversion rights at a valuation cap. Lower level of community familiarity. Further reading: The Evolution of Entrepreneurial Finance: A New Typology. Of the Inc. raised from angels.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Both Sides of the Table

SEPTEMBER 23, 2010

Asked to respond to the topic, “What collusion happens with AngelList, if any&# I wrote the following: “Um, let’s not be naive here and not think that a “form of collusion&# doesn’t happen on virtually any financing round. How well financed is the competition? At what valuation? Cap or warrants?

Entrepreneur 292

Entrepreneur Technical Review Stealth Valuation 292

Startup Professionals Musings

FEBRUARY 2, 2019

Until I read the classic book “ The Business of Sharing, ” by Alex Stephany, who founded JustPark (current valuation estimated at £33M), I too had no idea of the scope of opportunities, and the 350 or more players already out there. Assets need to move in a community of engaged users. Community means more than supply and demand.

Cuba 246

Cuba Venture Capital Community Valuation 246

This is going to be BIG.

SEPTEMBER 30, 2012

How else can you explain this headline matching a story about a professional social network still trying to explore revenues raising $17mm on an $80mm valuation? David's firm most recently participated in the $77 million second round financing of SoFi, a one year old startup focusing on student loans. Perhaps I need to rethink that.

Venture Capital 114

Venture Capital Marketing Term Sheet Software Review 114

Hunter Walker

SEPTEMBER 15, 2023

So when I tell you what I’m seeing in venture financing these days if you disagree with me, it might just be that we’re touching different parts of the elephant. Semil asserts, Seed-stage valuations have generally been left-unchanged, and I could argue even they’ve gone up since the beginning of 2022.

Cap Table 95

Cap Table Valuation Salary Seed Stage 95

The Startup Magazine

SEPTEMBER 10, 2019

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

Founder 116

Founder Valuation Dividend Startup 116

Feld Thoughts

NOVEMBER 18, 2013

Here’s the punchline: if you run your company as if you have closed a VC equity financing round even though you actually closed a convertible debt round, you’ll be in much better shape when it comes time to raise your Series A financing. The investors, founders, and “community” are all super excited about ASC.

Burn Rate 152

Burn Rate Equity Software Review Early Stage 152

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 Pre-Money Valuation Denver 137

www.entrepreneur.com

SEPTEMBER 22, 2011

Entrepreneur Homepage Startups Starting a Business Home How-To Guides Startup Basics Business Ideas Business Planning Startup Financing Success Stories Home-Based Business Starting a Business Play Video How to Take a New Product from Just an Idea to a Business (Video). Financing Some Jobs Act Proposals Make Headway.

Sweat Equity 55

Sweat Equity Equity Fractional CTO CTO 55

Version One Ventures

OCTOBER 15, 2020

Let’s now explore the major developments and ultimate use cases for the Lightning Network in two categories: A) payments/finance and B) Web3. . Use Case I: Payments and Finance . I’m seeing a lot of experimentation and development on this front in the Lightning community. 1) Generalizable Payments . 3) Exchanges + HFTs.

Networking 168

Networking Global OTC Security 168

Cracking the Code

JANUARY 16, 2012

Blablacar is one such example of innovation: with a fast growing community of 1.6m Zimride , Ridejoy ), they have not yet seen the explosive growth that the service has observed in Europe with more than 1 Billion miles shared by the community and more than 8m passengers transported ! SaaS 13 Index Valuation. Yahoo Finance.

Software Review 95

Software Review Europe Technical Review Spain 95

Startup Professionals Musings

SEPTEMBER 30, 2011

Once you have a potential investor excited about your team, your product, and your company, the investor will inevitably ask “What is your company’s valuation?” How much is NewCo worth to investors at this point (pre-money valuation)? This is the most concrete valuation element, usually called the asset approach.

Pre-Money Valuation 246

Pre-Money Valuation Valuation NPV Intellectual Property 246

David Teten

AUGUST 20, 2019

Revenue-Based Investing (“RBI”) is a new form of VC financing, distinct from the preferred equity structure most VCs use. However, to raise RBI a woman founder does not need to promise a valuation of $1 billion within 5 years. Realistic projections.

Revenue 60

Revenue Cofounder Founder Venture Capital 60

View from Seed

JANUARY 11, 2021

Despite the sustained climate of uncertainty, valuations continued to climb and VC exit values reached their second highest total ever in Q3. Investors looked to known, credible networks, to closed communities, and sought warm introductions to source new deals. billion in 148 funds for the first half of 2020. billion in under a year.

Venture Capital 350

Venture Capital Cofounder Early Stage Seed Stage 350

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. Valuation caps can come into play in settings other than seed-stage convertible note financing rounds. Read on for a fuller explanation.

Valuation 98

Valuation Pre-Money Valuation Merger Vesting 98

Up and Running

SEPTEMBER 5, 2017

Her background includes senior roles in both the banking and tech sectors, and she has launched four data businesses—including her current firm, New Frontier Data , which boasts a $20 million valuation and has received $5 million in funding. Giadha Aguirre de Carcer via Her Agenda. Stitch Fix CEO Katrina Lake, via the Los Angeles Times.

Venture Capital 82

Venture Capital Lean Cofounder Technical Review 82

Up and Running

AUGUST 29, 2014

Many people who want to start a business believe they will be able to get grants or loans to help them finance the venture. Listen with an open mind to employees, suppliers, customers, the media and members of the community. Ask what the firm’s specialties are (tax, audit, business valuation, etc.). Often this is not true.

Small Business 87

Small Business CPA Government North America 87

View from Seed

MARCH 24, 2015

Moreover, all the excitement around these unicorn financings are, in my opinion, pointing entrepreneurs and the whole market in the wrong direction. 1 billion private financings do not equate $1 billion of company value. I wish there was more excitement about great, durable businesses instead of unicorn financings.

Valuation 120

Valuation Startup IPO Finance 120

Cracking the Code

AUGUST 3, 2011

Let me show other source that may be good for community. Detailed SaaS Spreadsheet (Valuation and CAC benchmark). SaaS 13 Index Valuation. Yahoo Finance. I feel like I’m often looking for interesting things to read about a variety of subjects, but I manage to include your blog among my reads every day. Newer Post.

Software Review 67

Software Review Europe Technical Review Search 67

Berkonomics

FEBRUARY 8, 2018

We have previously made the case that professional investors demand more in the form of restrictive covenants and lower valuations. Each of these companies needed more cash than professional angel investors were willing or able to provide, and we turned to the venture community for larger investments.

Covenant 97

Covenant Angel Investor Valuation Later Stage 97

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.

Silicon Valley 74

Silicon Valley Early Stage Venture Capital Valuation 74

Both Sides of the Table

APRIL 14, 2012

What I want to talk about today is one of the insider baseball discussions of our industry this past week: The odd fact of the $500 million financing round completed just before the company sold for a B. Did raising money at a $500 million valuation help secure the $1 billion deal? “Impending” valuation.

Valuation 316

Valuation Balance Sheet Dilution Term Sheet 316

Startup Professionals Musings

MAY 11, 2016

Until I read a recent book “ The Business of Sharing, ” by Alex Stephany, who founded JustPark (current valuation estimated at £20M), I too had no idea of the scope of opportunities, and the 200 or more players already out there. Assets need to move in a community of engaged users. Community means more than supply and demand.

Cuba 120

Cuba Marketing Venture Capital Community 120

www.inc.com

SEPTEMBER 24, 2011

Join our community. Finance | Tuesdays. Financing a Small Business. Financing A Small Business. Personal Finance. In the past few years, hundreds of small companies have been snatched up by private equity firms willing to agree to ever-rising valuations. ); Login or signup. Welcome | Logout. Forgot login ?

Arizona 40

Arizona Equity Iowa Venture Capital 40

View from Seed

OCTOBER 15, 2014

Over the summer, based on feedback from our portfolio and the broader startup community, NextView created pre-formatted board deck templates for seed-stage startups — part of our Growth Guides series. Finance is mission critical, for instance – it just appears on a recurring basis.

Seed Stage 331

Seed Stage Cap Table Metrics Burn Rate 331

Feld Thoughts

APRIL 29, 2015

Now that everyone is overly focused on unicorns, the headline number on the valuation (e.g. Company X raised Y at a valuation of Z from A, B, and C) has crept into the story on big rounds. No understanding of the human dynamics behind the financing. No underlying metrics that drive the financing. financing of Mattermark.

Atlanta 70

Atlanta Valuation Term Sheet Finance 70

Berkonomics

JUNE 8, 2017

Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). And even with the significant cost of credit card debt, many entrepreneurs aggressively use existing cards to finance a startup.

Private Equity 106

Private Equity Valuation Cap Table Accredited Investor 106

Startup Professionals Musings

MAY 8, 2015

Until I read a new book “ The Business of Sharing, ” by Alex Stephany, who founded JustPark (current valuation estimated at £20M), I too had no idea of the scope of opportunities, and the 200 or more players already out there. Assets need to move in a community of engaged users. Community means more than supply and demand.

Cuba 120

Cuba Entrepreneur Venture Capital Community 120

VC Cafe

SEPTEMBER 16, 2021

Let’s start with a short definition: [the creator economy] is defined as the class of businesses built by over 50 million independent content creators, curators, and community builders including social media influencers, bloggers, and videographers, plus the software and finance tools designed to help them with growth and monetization.

Startup 207

Startup Social Media Venture Capital Audio 207

Hunter Walker

APRIL 5, 2017

You can read more about Shield AI in our blog post about the financing and Fast Company’s great coverage. Which meant funding rounds and valuations increased quickly for credible teams in this space. Shield sells autonomous robotics into the public sector, initially the Department of Defense and Department of Homeland Security.

Valuation 93

Valuation Acquisition Finance Security 93

www.inc.com

SEPTEMBER 24, 2011

Join our community. Finance | Tuesdays. Financing a Small Business. Financing A Small Business. Personal Finance. Before Roving Software could receive its first round of financing from professional investors, in early 1999, he had to put all the stock arrangements in writing. ); Login or signup. Franchises.

Fractional CTO 40

Fractional CTO Equity Iowa Technical Cofounder 40