Remove Differentiation Remove Distribution Remove Pre-Money Valuation
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A VC’s take on the Season 5 premier of Sharktank

Lightspeed Venture Partners

Despite having over 500k downloads and making $450k in revenue over the last 21 months, he had only $185k left in the bank, which meant that he would be out of business in 90 days if he didn’t raise more money. pre money valuation and planned to use the money to market the app. pre money valuation).

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Shark Tank Season 4 Week 6 breakdown

Lightspeed Venture Partners

This implies a pre money valuation of $1.045M. See my breakdown of week 2 for more on how to calculate pre money valuation.). The pre money valuations on the two deals were close enough to be a wash, but the ability to accelerate the business at twice the speed would have been a real differentiator.

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What to Expect When You're Expecting Venture Capital Returns

This is going to be BIG.

You're putting money in over the first 3-4 years, but you're not really seeing most of it back until years 7, 8, and 9, if not longer. Distributions can actually be drawn out over an extended period of time, but for the purposes of this exercise, I just kept the fund to 11 years. It's what you'd expect. Exits are $250mm.