Both Sides of the Table

JULY 22, 2010

And for some strange reason entrepreneurs didn’t share this information. Other founders, “as a privately held company we don’t disclose our valuation.&# Me, “dude, I’m not a journalist. I’ve started from day one trying to build total transparency into my process with entrepreneurs.

Valuation 405

Valuation Liquidation Preference Pre-Money Valuation Term Sheet 405

Both Sides of the Table

MAY 30, 2018

One of the hardest things about the fund-raising process for entrepreneurs is that you’re trying to raise money from people who have “asymmetric information.” As an entrepreneur it can feel as intimidating as going to buy a car where the dealer knows the price of every make & model of a car and you’re guessing at how much to pay.

Valuation 324

Valuation Post-Money Valuation Pre-Money Valuation Cofounder 324

Lightspeed Venture Partners

OCTOBER 22, 2012

This implies a pre money valuation of $1.045M. See my breakdown of week 2 for more on how to calculate pre money valuation.). Barbara suggested that this was more money than the company needed. The entrepreneurs asked what value the investors would add beyond money.

Pre-Money Valuation 101

Pre-Money Valuation Valuation Dilution Differentiation 101

Growthink Blog

JANUARY 24, 2011

I get the same question a lot from entrepreneurs raising equity capital (venture capital or angel funding). The liquidation preference means what is sounds - namely that preferred stock holders with this right get all of their money back (i.e. This is obviously a big, big difference to both the entrepreneur and the investor.

Preferred Stock 93

Preferred Stock Stock Common Stock Liquidation Preference 93

Gust

OCTOBER 20, 2011

In 2011, the valuation of pre-revenue, start-up companies is typically in the range of $1.5–$2.5 million and is established by negotiations between the entrepreneur and the angel investors. Such comparisons can only be made for companies at the same stage of development, in this case, for pre-revenue startup ventures.

Valuation 146

Valuation Pre-Money Valuation Intellectual Property Technical Review 146

Startup Lessons Learned

JUNE 19, 2019

So the venture process was all about trying to figure out whether or not people could deliver what they said they could, and you typically invested as early as possible at a $5 million pre-money valuation, hoping the company would be worth $500 million, in which case you'd make 20 to 30 times your money. Most hedge.

Silicon Valley 159

Silicon Valley Lean Venture Capital Pre-Money Valuation 159