Agile VC

APRIL 17, 2011

Post-money valuation probably no higher than $12M (2). Pre-money valuation was approx. Led by Oak Investment Partners with participation by General Catalyst, Sequoia, & Accel and others. Pre-money valuation was at least $250M (2). My partner @ LeeHower looks back: [link] 5 days ago Search.

Pre-Money Valuation 113

Pre-Money Valuation Liquidation Preference Dividend Common Stock 113

betashop.com

OCTOBER 8, 2012

It has been awesome, flattering, and humbling to see that post went viral and has been seen by so many thousands of people — mainly aspiring entrepreneurs — and has been translated into many languages. If we don’t enjoy working with someone - an employee, a partner, whomever - we’re just not going to do it.

Technical Review 108

Technical Review Technology Software Review Valuation 108

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

Pascal's View

JULY 9, 2017

Andrew Krowne and I recently co-wrote an article in Tech Crunch , Why SAFE Notes Are Not Safe for Entrepreneurs. This is a fundamental issue that does, indeed, boil down to understanding the post-money valuation of a company. Many entrepreneurs lose track of what they have been cooking up in the cap table.

Post-Money Valuation 49

Post-Money Valuation Valuation Cap Table Covenant 49

Both Sides of the Table

NOVEMBER 4, 2009

I often have career discussions with entrepreneurs – both young and more mature – whether they should join company “X&# or not. Let’s assume that the company raised it at a normal VC valuation, which means it gave up 33% of the company and thus $5 million / 33% = $15 million post-money valuation.

Stock Options 418

Stock Options Stock Liquidation Preference Option Pool 418

Both Sides of the Table

AUGUST 1, 2010

Many (Union Square Ventures, Foundry Group, True Ventures, GRP Partners, Mike Hirshland at Polaris Ventures) do it the right way – we treat it as a normal investment and we don’t have a “options&# strategy with our investment. Many firms do it in a way that can be more detrimental to entrepreneurs.

Post-Money Valuation 298

Post-Money Valuation Term Sheet Warrant Partner 298

Rob Go

AUGUST 29, 2016

Most term sheets talked about the valuation in these terms, and you added the dollars invested to get a post-money valuation. Founders also had to do a little math on the new option pool to really understand what their ownership would be post investment, since it was typically taken out of the company pre-money.

Post-Money Valuation 52

Post-Money Valuation Valuation Cap Table Term Sheet 52

Agile VC

DECEMBER 6, 2012

I was talking with an entrepreneur recently about this phenomenon. 1) LP Bases Change Over Time – Most healthy VC firms tend to have stable relationships with the limited partners investing with them. There’s a couple reasons which basically all relate to potential conflicts of interest from misaligned incentives.

LP 178

LP Balance Sheet Differentiation Limited Partner 178

The Startup Lawyer

OCTOBER 9, 2010

Good luck trying to convince even the most nascent of startups to take your investment at around a $100k post-money valuation. b) Office space is a nice kicker, but no entrepreneur is going to give up equity in their mobile app startup company for office space. One of the 2 partners plans to provide personal mentorship.

Dallas 91

Dallas Seed Capital Incubator Post-Money Valuation 91

The Equity Kicker

APRIL 10, 2015

We’ve just been writing an update for investors about the progress our partner companies have been making. A few of them have done good up rounds and the easiest way to describe the magnitude is to talk about the valuation multiple.

Valuation 60

Valuation Pre-Money Valuation Post-Money Valuation Option Pool 60

thestartuplawyer.com

FEBRUARY 24, 2010

Entrepreneurs often believe their startup company faces legal threats from only external sources. Even so, I believe the negative experience can end up producing a better entrepreneur if he or she applies lessons learned to current and future startups. He obviously never launched a startup and got shafted by a co-founder.

Cofounder 40

Cofounder Founder Preferred Stock Startup 40

Board Effect

MAY 10, 2019

There’s the owner—maybe a partner or two—but unless employees are offered equity from the get-go, there’s typically not a whole lot of dilution. Most entrepreneurs enter into investor negotiations with an assessment of what their business is worth, the percentage of ownership they’re willing offer, and the amount they’re seeking in return.

Cap Table 40

Cap Table Liquidation Preference Dilution Liquidity Event 40

Seeing Both Sides

NOVEMBER 30, 2008

That's because the two key assumptions regarding how much money a portfolio company would require from start to finish (the exit) have changed: (1) the length of time before exit; and (2) the number of portfolio companies that would attract outside capital to lead follow-on financing rounds. Today, those financings are simply not happening.

Pre-Money Valuation 20

Pre-Money Valuation Portfolio Post-Money Valuation Valuation 20

Lightspeed Venture Partners

SEPTEMBER 23, 2012

The entrepreneurs had made $150k in revenue running classes for four months at a gym in New York, selling out the classes at $35/class. post money valuation. Mark Cuban offered $300k for 33% of the company, implying a $900k post money valuation. implying a $600k post money valuation.

Pre-Money Valuation 164

Pre-Money Valuation Post-Money Valuation Valuation Dilution 164