Both Sides of the Table

FEBRUARY 25, 2010

We were trying to optimize around a few criteria: price, size of round, number of syndicate partners and, of course, terms. But we weren’t optimizing for dilution – we were building a $1 billion+ company and we wanted the runway to succeed. We ended up agreeing a term sheet for $16.5 million at a $15 million pre-money valuation.

Technical Review 301

Technical Review Term Sheet Due Diligence Venture Capital 301

thebarefootvc

MAY 8, 2012

It is the human capital involved, both internally with company teams and externally with advisors, boards and investors, that is going to differentiate which startups survive and become the disruptive businesses of tomorrow. Money is fast turning into a commodity.

Venture Capital 78

Venture Capital Syndication Syndicate Bandwidth 78

Both Sides of the Table

APRIL 27, 2014

I guess if you’re in high-volume, low-differentiation mode perhaps this is efficient for you. I told my friend that I felt that in 2014 too many new VCs feel the pressure to chase deals, to be a part of syndicates with other brand names and to pounce on top of every startup whose numbers are trending up quickly. Pay attention.

Cofounder 374

Cofounder Syndication Syndicate Early Stage 374

Lightspeed Venture Partners

SEPTEMBER 21, 2013

With his back to the wall and about to run out of money, his first priority should have been runway extension, not dilution from new capital. pre money valuation seems big, the actual implication is only between 5% and 10% dilution since the round size is small. But eventually two syndicates emerged.

Pre-Money Valuation 167

Pre-Money Valuation Valuation Dilution Distribution 167