David Teten

JULY 12, 2017

Although EquityZen is primarily an online marketplace for secondary shares in private companies, they also offer syndicated primary investments. Hence, if Sequoia is the lead and the valuation is reasonable, it’s near 100% chance. Market Insight. Alpha pursues a similar model.

Syndication 60

Syndication Syndicate Institutional Investors LP 60

Both Sides of the Table

FEBRUARY 25, 2010

A reminder that it is important for all entrepreneurs is to remember to be careful about “deal drift.” We were trying to optimize around a few criteria: price, size of round, number of syndicate partners and, of course, terms. million at a $15 million pre-money valuation. We ended up agreeing a term sheet for $16.5

Technical Review 301

Technical Review Term Sheet Due Diligence Venture Capital 301

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

Feld Thoughts

AUGUST 25, 2015

Take a look at the founding syndicates of each: Masstor Sytems (5/1979). Quantum Corporation (6/1980). What is striking about these syndicates is that nobody had any meaningful capital, which forced syndication and cooperation. Some were Silicon Valley early stage companies, such as Apple, Quantum, and Masstor Systems.

Venture Capital 70

Venture Capital SBIC Technical Review Silicon Valley 70

Gust

OCTOBER 12, 2011

During the summer of 2010, I developed a workshop, A New ACEF Valuation Workshop for Angels and Entrepreneurs. To provide some reference points, I surveyed thirteen angels groups in North American to determine their recent experience in negotiating the pre-money valuation of pre-revenue companies. Current Average. up slightly.

Angel Groups 125

Angel Groups Valuation Pre-Money Valuation St. Louis 125

Agile VC

APRIL 17, 2011

Post-money valuation probably no higher than $12M (2). Pre-money valuation was initially set higher but was adjusted to match the Ser B valuation. Pre-money valuation was approx. Pre-money valuation was approx. Pre-money valuation was at least $250M (2). liquidation preference, 6% accumulated dividend (1).

Pre-Money Valuation 113

Pre-Money Valuation Liquidation Preference Dividend Common Stock 113

Gust

JULY 12, 2012

In all four countries we met passionate entrepreneurs who were eager to discuss their exciting startups, as well as angel investors looking to support them. The following day, I delivered a four hour workshop on capital sources and pitch strategies for fifteen entrepreneurs in the Propel program.

Community 121

Community Estonia Ireland Finland 121

thebarefootvc

MAY 8, 2012

As an entrepreneur at heart, I often innately grasp the potential of entrepreneurs and ideas that I meet with. These days, I am seeing a large number of first time entrepreneurs with great ideas, which is fantastic to see. There is inherent risk taking when you haven’t done it before, which often leads to true innovation.

Venture Capital 78

Venture Capital Syndication Syndicate Bandwidth 78

David Teten

JANUARY 19, 2021

Yes, via conversion rights at a valuation cap. Yes, via conversion rights at a valuation cap. See Why Are Revenue-Based Investors Investing in Women & Diverse Entrepreneurs? Coinvestors: Flexible VC terms have not been standardized, which may make the investment harder to syndicate. Flexible VC: Compensation-based.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Genuine VC

MAY 29, 2014

Yet even today, whether or not to take a (relatively) small check in a seed round syndicate from a multi-hundred million or even billion dollar fund is still a decision which takes quite a bit of consideration and sometimes consternation. So there is an element of (positive) selection bias in the larger VC syndicate cohort companies.

Syndication 166

Syndication Syndicate Seed Stage Valuation 166

David Teten

DECEMBER 3, 2019

Small investment firms often have interns and entrepreneurs in residence passing through, each of which is a security risk. Chris Dixon, Partner, A16Z, observes , “Success in VC is probably 10% about picking, and 90% about sourcing the right deals and having entrepreneurs choose your firm as a partner”. 2) Market . 7) Negotiate .

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

Agile VC

SEPTEMBER 15, 2011

The very strongest companies can still likely get out if they really wanted, but may not command the valuations they hoped for in more bullish times. Im a former Silicon Valley entrepreneur turned East Coast VC. The second tier of companies probably have to wait whether they like it or not. Author howerl. Filed under Uncategorized.

IPO 100

IPO Marketing Silicon Valley Private Equity 100

View from Seed

JUNE 10, 2020

As we’ve shared, we intentionally wanted to flip the traditional Accelerator model on its head and offer a unique offering for entrepreneurs at the earliest of stages. The dynamics for participation in the next round’s fundraise syndicate is complex, and many accelerators (and VCs) obfuscate their intentions for self-serving interests.

Cofounder 177

Cofounder Syndication Syndicate Alabama 177

View from Seed

APRIL 30, 2015

From a company milestones perspective, entrepreneurs who take on venture debt are almost always thinking about raising that next round of capital from other institutions. GM: The model is more about the relationship with the entrepreneurs, the investors, and us as the bank, as opposed to cash flow or fixed assets to lend on.

Term Sheet 120

Term Sheet Equity Startup Seed Stage 120

Rob Go

MAY 20, 2014

The end result though is that the dynamics around series A rounds has started to seem pretty murky for entrepreneurs. Below are some broad guidelines on the major topics around series A’s that I hear entrepreneurs thinking about. Waiting 6 months longer to raise may improve valuation in the short term.

Valuation 76

Valuation Dilution Post-Money Valuation Syndication 76

Both Sides of the Table

NOVEMBER 8, 2010

The founders felt that having a legitimate site for content would discourage Silicon Valley VC’s from funding entrepreneurs to create the next big TV killer. They raised $100 million from Providence Equity Partners at a $1 billion valuation and have thus proven that they understand that a degree of independence is vital for their success.

Video 292

Video Technical Review Advertising Distribution 292

Both Sides of the Table

APRIL 27, 2014

Of course these are great places to network with other investors, meet great entrepreneurs and keep your connections strong with senior execs at larger companies like Yahoo!, But it’s very easy to be flattered into “here’s why we want YOU as an investor” by entrepreneurs and earlier-stage investors alike.

Cofounder 374

Cofounder Syndication Syndicate Early Stage 374

Genuine VC

NOVEMBER 12, 2012

It’s really interesting, but perhaps only applicable to a more limited set of entrepreneurs. In contrast, valuation always has room to move up. Terms precedent is one solid reason (among others like founder-investor alignment) that entrepreneurs should have bias towards priced equity round vs. convertible notes in seed financings.

Finance 128

Finance Mezzanine Valuation Seed Stage 128

Genuine VC

JULY 30, 2012

In theory, there are three levels of pricing for an entrepreneur to potentially signal to a prospective investor: Lower than “market.” This approach is almost never a good idea. By definition, all entrepreneurs should think that their endeavor is truly exceptional. Above market.

Valuation 136

Valuation Pre-Money Valuation Angel Investor Syndication 136

View from Seed

AUGUST 20, 2014

It seems like a high-class problem for an entrepreneur to be able to influence round composition, and it is. How should an entrepreneur think about the different types of investors affecting their seed and Series A rounds? But I find that once a company has investor interest, many other folks tend to want to pile on.

Startup 301

Startup Syndication Syndicate Boston 301

This is going to be BIG.

MARCH 3, 2014

At what valuation? Will the entrepreneur count that investor among their most helpful? Would the entrepreneur enthusiastically include them in the syndicate of their next venture? How long ago? Are they making real revenue? Are the exit prospects for the company any good? Did they lead it?

Syndication 145

Syndication Syndicate Venture Capital Valuation 145

Feld Thoughts

DECEMBER 10, 2014

The deals tend to fall into two categories – easy and immediate, which multiple bidders generating an rapidly escalating valuation or a long slow slog through lots of “almost there but we are passing because of some arbitrary reason.” We are happy to support whatever process an entrepreneur wants to go through.

Later Stage 142

Later Stage Syndication Syndicate Portfolio 142

Feld Thoughts

APRIL 29, 2015

Now that everyone is overly focused on unicorns, the headline number on the valuation (e.g. Company X raised Y at a valuation of Z from A, B, and C) has crept into the story on big rounds. While this makes for press release fodder and ego gratification, it’s of very little use to entrepreneurs. financing of Mattermark.

Atlanta 70

Atlanta Valuation Term Sheet Finance 70

David Teten

SEPTEMBER 23, 2017

Chris Dixon, Partner, A16Z, observes , “ Success in VC is probably 10% about picking, and 90% about sourcing the right deals and having entrepreneurs choose your firm as a partner”. Signal is a fundraising tool for founders run by NFX Guild, which identifies the most relevant VCs for you. . 3) Originate investments.

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

Feld Thoughts

JULY 14, 2015

Assuming equity is raised at or above that cap, the total dilution, before the new money, is 16.6% (equivalent to an equity financing of $1m at a $6m post money valuation. The term sheet converts all the convertible debt into a post-money valuation of $100, essentially making the convertible debt worthless. Sure – it happens.

Recapitalization 70

Recapitalization Pre-Money Valuation Post-Money Valuation Angel Investor 70

Both Sides of the Table

MARCH 6, 2015

*. If you are a 20-something tech entrepreneur you could be forgiven for thinking that seed-stage investors, Angellist Syndicates and widely available angel money always existed. It is, of course, a very recent phenomenon. I was out to raise my first seed money in my second startup of $500,000.

Seed Stage 150

Seed Stage Silicon Valley Syndication Syndicate 150

Feld Thoughts

AUGUST 10, 2010

In this case neither Niel (nor I) had any interest in creating a traditional syndicate to fund the company. It’s a great example of how we like to work with entrepreneurs – especially those that we have a long history with. We did a second financing by ourselves at an increased valuation – this was the “Series B&#.

Syndication 120

Syndication Syndicate Angel Financing Finance 120

Professor VC

JUNE 6, 2016

When AngelList first launched syndicates a few years ago, I was very skeptical of the idea of angels taking carry on my investment. I work hard on mine and you work hard on yours and we all win (entrepreneurs, angels, and upstream VC's). So what changed and why I am now launching a syndicate? It's great for entrepreneurs!

Syndication 28

Syndication Syndicate Ratchet Cap Table 28

Agile VC

FEBRUARY 28, 2012

Startups in NextView’s portfolio frequently receive inbound interest from other VC investors who are intrigued about what they’re doing, and I often talk with other early-stage entrepreneurs how to approach similar situations. Im a former Silicon Valley entrepreneur turned East Coast VC. Author howerl. Read More ».

Early Stage 100

Early Stage Syndication Syndicate Silicon Valley 100

View from Seed

JANUARY 26, 2016

This means that it has rewarded Series A and B investors for chasing momentum and made it less important for these investors to focus on valuation or sound, early unit economics. And all of that is a lot to absorb and understand, let alone react to as an entrepreneur who’s full-time job is not to fundraise.

Seed Stage 120

Seed Stage Early Stage Cofounder Finance 120

Austin Startup

AUGUST 1, 2017

TL;DR: In a market that has historically idolized huge, splashy financings and exits, an increasing number of entrepreneurs are realizing that everyone else’s definition of success — particularly among certain large VCs — isn’t necessarily aligned with their own. Most individual VCs can only support about 7–10 companies at a time.

Liquidation Preference 48

Liquidation Preference Common Stock Valuation Silicon Valley 48

Agile VC

MAY 21, 2012

There’s also a meaningful cohort of newly public companies that now have valuations of $1B+ who could seriously contemplate an acquisition of $100M+ for stock or cash… Yelp, Zillow, Tripadvisor, Jive Software, Splunk, and others. Im a former Silicon Valley entrepreneur turned East Coast VC. Pingback: this. Pingback: [link].

Acquisition 162

Acquisition Silicon Valley B2B Seed Stage 162

Professor VC

APRIL 1, 2010

was part of a Dow Jones VentureWire webinar last week titled Negotiating An Angel Deal: What Angels, Entrepreneurs & VCs Need to Know. One comment made by Jason was that angels tend to be less sensitive than VCs on valuation and can potentially make it difficult to get a venture financing done at acceptable valuation.

Term Sheet 32

Term Sheet Angel Investor San Jose Venture Capital 32

Rob Go

AUGUST 26, 2013

What I am finding interesting is watching the way valuations and difficulty of raising has changed for these different flavors of seed rounds. This led to a period of seed stage exuberance, and that led to higher valuations, larger rounds, etc. The risks were not commensurate with the valuation relative to institutional seed rounds.

Valuation 68

Valuation Seed Stage Syndication Syndicate 68

Professor VC

MARCH 12, 2015

It was a great product addressing a large market opportunity and was interested in seeing how the AngelList syndicate process worked. Due to confidentiality provisions, I can''t disclose details, but there are many very unhappy participants who invested through the syndicate. Syndicates can either be company led or investor led.

Syndication 28

Syndication Syndicate Silicon Valley Common Stock 28

Professor VC

JANUARY 17, 2008

I think the title of this post is a TV show, but fitting as there has been much debate in the venture community as to the whether angel investors are good or bad for entrepreneurs and VCs. One of my comments was that we would likely see more institutionalization of angel groups and syndication of deals among groups.

Pre-Money Valuation 28

Pre-Money Valuation Angel Investor Angel Groups Valuation 28

Duct Tape Marketing

DECEMBER 14, 2017

Basically started as somebody of how do we take photos of cars and the pricing and descriptions of the cars, and put it all in one place, but then syndicate it. Partly what I’m getting is a lot of people want to sell their business, but it’s actually very difficult for somebody to even valuate it. Matt Watson: Yeah.

Kansas City 47

Kansas City CTO Hire Las Vegas Software Developers 47