David Teten

JANUARY 19, 2021

This structure allows for alignment on the front end, and real-time flexibility for performance metrics,” says Samira Salman , a family office investor and advisor. . Flexible VCs have created structures based on other company performance metrics than revenues, such as profits or founder salaries. Flexible VC 102: Variations.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Tim Keane

JANUARY 12, 2010

Next, they carefully consider the range of multiples being used today to value companies being acquired or doing IPOs in the market that the business is in.   A full ratchet anti-dilution clause is very unfriendly to entrepreneurs; it requires them to make up the entire difference in price from their own holdings.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

K9 Ventures

OCTOBER 10, 2017

If the Micro-VCs are looking for Series A-like metrics, what does a company do when it’s just getting started? In order for a company to attract a full Seed round ($2M – $3M), that company needs to show an almost completed product, an advanced prototype, or some kind of traction/demand metrics.

Seed Stage 82

Seed Stage Finance Later Stage Equity 82

ReadWriteStart

JULY 18, 2011

Kedrosky: "In the 90's I was an analyst through all this [tech investment and IPO] madness. You want to build your own IPO and exit. At this stage, the founders pay for the dilution of the shares and the funders will take 20 to 25% of the company. An investment banker sees it as a serial kill, conquest, get the fee and move on.

Investment Bankers 153

Investment Bankers Technical Review Cofounder Due Diligence 153

Startup Lessons Learned

OCTOBER 26, 2009

Every time you listen to customers, you fear diluting your vision. Every time you listen to customers, you fear diluting your vision. ► August (2) SXSW Case Study: SlideShare goes freemium ► July (4) Case Study: kaChing, Anatomy of a Pivot Some IPO speculation Founder personalities and the “first-class man&# th.

Advisory Board 151

Advisory Board Customer San Francisco Lean 151

Both Sides of the Table

SEPTEMBER 18, 2014

There were no metrics. Him: On metrics. If we priced it based on any metrics your company would likely be worth less than 7 figures at your A round. And now I have to explain to team that they’re taking more dilution than they expected if we do a down round. Me: More dilution? Maybe an IPO – who knows?

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Seeing Both Sides

JANUARY 13, 2015

Always testing and trying to run fast tests to put up some strong metrics before running out of money (did I mention we''re running out of money?). The founders are getting restless because they have been diluted, have less responsibility and realize that the company isn''t going to reach $1 billion in 3 years. 50-100 million.

Mezzanine 20

Mezzanine IPO Finance Business Model 20

Both Sides of the Table

SEPTEMBER 10, 2021

In 2001 companies IPO’d very quickly if they were working, by 2011 IPOs had slowed down to the point that in 2013 Aileen Lee of Cowboy Ventures astutely called billion-dollar outcomes “unicorns.” How little we all knew how ironic that term would become but has nonetheless endured. So in a way it’s self selecting.

Pre-Money Valuation 471

Pre-Money Valuation Valuation Venture Capital Early Stage 471

abovethecrowd.com

APRIL 20, 2016

The pressures of lofty paper valuations, massive burn rates (and the subsequent need for more cash), and unprecedented low levels of IPOs and M&A, have created a complex and unique circumstance which many Unicorn CEOs and investors are ill-prepared to navigate. In Q1 of 2016 there were zero VC-backed technology IPOs.

IPO 40

IPO Term Sheet Silicon Valley Valuation 40

Gust

SEPTEMBER 17, 2014

There were no metrics. Him: On metrics. If we priced it based on any metrics your company would likely be worth less than 7 figures at your A round. And now I have to explain to team that they’re taking more dilution than they expected if we do a down round. Me: More dilution? Maybe an IPO – who knows?

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

Reid Hoffman

JUNE 8, 2021

Airbnb was preparing for an IPO right when the pandemic hit, and everything changed in a matter of days. The burden [should] just be that we care; that if we learn something, we improve it, and that we don’t only use single output metrics and its growth at all costs. Obviously, the challenges of 2020 were next level.

Silicon Valley 69

Silicon Valley Hosting Rhode Island Design 69

Reid Hoffman

JUNE 8, 2021

Airbnb was preparing for an IPO right when the pandemic hit, and everything changed in a matter of days. The burden [should] just be that we care; that if we learn something, we improve it, and that we don’t only use single output metrics and its growth at all costs. Obviously, the challenges of 2020 were next level.

Silicon Valley 36

Silicon Valley Hosting Rhode Island Design 36

Ben's Blog

AUGUST 17, 2020

A multiple is a company value divided by a metric. If an investor could have identified Salesforce’s ability to maintain such prolonged growth upfront, invested in its 2004 IPO, and then held on through to today, they could have made ~70x returns: equivalent to ~30% IRRs over a 16 year period. Not too shabby!

Valuation 36

Valuation Balance Sheet Cofounder Forecast 36