VC Cafe

SEPTEMBER 26, 2022

For more about forecasting growth in these uncertain times, check out Sequoia’s “ Adapting to Endure ” presentations published in May 2022. A good way to think about valuation in seed/pre-seed is to reverse engineer the next round. We should all care about the UN Sustainable Development Goals.

Founder 187

Founder Startup Valuation Pre-Money Valuation 187

Both Sides of the Table

MARCH 30, 2016

If you want to see what was on my mind – I started foreshadowing change publicly in October 2015 with a forecast of what I expected in 2016 VC funding markets at a presentation I gave at the annual Cendana VC/LP conference hosted by Michael Kim. CMRR (contracted monthly recurring revenue) grow 100% y/y. FOMO was NOMO.

Balance Sheet 150

Balance Sheet Burn Rate Valuation Forecast 150

Both Sides of the Table

FEBRUARY 14, 2016

Valuing any company can be difficult because it requires a degree of forecasting future growth & competition and ultimately the profits of the organization. forward revenue for SaaS businesses when in the years before it had been less than 5x. Why Down Rounds are Harder Than You May Think. Down rounds are hard.

Valuation 150

Valuation Down Round Startup Later Stage 150

Business Plan Blog

OCTOBER 8, 2013

If you are pre-revenue then it will be difficult to portray market traction unless you have the budget to conduct customer surveys. Practicing Top-Down Sales Forecasting. Investors want to see a growth/revenue model that uses sales data and assumptions that predict sales by product and region. Ignoring Milestones.

Business Plan 67

Business Plan NDA Exit Strategy Valuation 67

Seeing Both Sides

JANUARY 9, 2009

Seeking to assuage the nervous entrepreneurs amongst the portfolio companies that were in attendence at his networking lunch reception, he assured them, "We [Intel Capital] intend to continue forward and be very supportive of your down rounds this year". But Intel Capital will be happy to invest in their down rounds.

Down Round 20

Down Round Forecast Portfolio Government 20

David Teten

AUGUST 7, 2019

Likely signs of a Value investment: the company has challenges in filling out the round; the investors have more negotiating leverage than the founders during the closing process; the company has significantly better metrics (e.g. LTV / CAC, revenue growth, etc.) were clearly Momentum, but [in hindsight] they were also Value.”

Venture Capital 60

Venture Capital Valuation Stock NDA 60