Conversion Operations Post-Money Valuation 
betashop.com
OCTOBER 8, 2012
At Fab, our virtual product is our website & apps, our physical products are the merchandise we sell, and our experience product is our operations and service. Do they operate in silos or do they foster teamwork and collaboration? 10M post-money valuation = $100M target. 500M valuation = $5B target.
Agile VC
DECEMBER 6, 2012
This person is an experienced CEO and a veteran of several startups, yet appreciating this nuance of how VC’s operate their business was relatively unfamiliar to him. Well at this juncture Startup X’s valuation is presumably a lot higher than it was at the Series A, maybe even 5-10x+ higher.
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Both Sides of the Table
SEPTEMBER 28, 2014
Conversely if you’re burning $600,000 per month (yes, some companies do) then you only have 5 months of cash left. If you have a very low gross margin (10-30%) it can be very hard to build a large, scalable business because you need to make a lot of sales to cover your operating costs.
Seeing Both Sides
JULY 15, 2009
A typical start-up company will do 2-4 venture capital financings before a successful exit (or, conversely, an ignomious ending). Year in, year out, Thus, VCs and entrepreneurs are not operating on an equal playing field when it comes to negotiating financings and interpreting the impact of the terms involved.
ithacaVC
JANUARY 24, 2013
The X and Y are negotiated, with the Y typically being a date shortly before the convertible debt is all used up by the company in its operations. One interesting point that comes up a lot is how to factor the convertible debt into the premoney valuation of the Series A round. I am going to ignore any valuation cap feature.
Both Sides of the Table
FEBRUARY 15, 2016
People who think of fund raising as a “distraction away from the core business” fundamentally don’t understand that running a business comprises of: Shipping products, selling to & servicing customers, marketing, HR, recruiting, financial reporting AND making sure you have enough money to support operations.
Agile VC
APRIL 17, 2011
2010 Operating Income: $16 million. At the end of the day Kayak’s playing a key role in the online travel process, but it appears more of the revenue comes from filling top of the conversion funnel rather than the middle or bottom of it. Post-money valuation probably no higher than $12M (2).
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