View from Seed

APRIL 30, 2015

Glen Mello: Venture debt is a good complement to equity. It’s generally got a lower cost compared to equity capital and can help support growth. So it makes it a lot more challenging when you have debt on the books that isn’t as longer term as equity. What are some pros and cons?

Term Sheet 120

Term Sheet Equity Startup Seed Stage 120

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. Private Equity Coinvestment: Best Practices Emerging (PWC). Market Insight.

Syndication 60

Syndication Syndicate Institutional Investors LP 60

Agile VC

SEPTEMBER 15, 2011

But if you read the whole article you glean more insight… the entire public equity markets have sunk in the last 3-4 months. 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. What will happen for the startup IPO market?

IPO 100

IPO Marketing Silicon Valley Private Equity 100

Both Sides of the Table

MAY 19, 2010

Current round: $35mm in Series C (extension of Series B at higher valuation) from General Atlantic, Matrix Partners. Platform that provides radio music programming via crowd sourced contributions from social community; programming is syndicated nationally. Read more: TechCrunch , Reg Form D , WSJ interview w/ Susan Lyne.

Partner 240

Partner New York City Cofounder Syndicate 240

Agile VC

APRIL 17, 2011

Obviously most of these employees are working hard primarily for equity upside compensation, but Kayak’s personnel costs are roughly $200K/head so the company is highly productive on a per employee basis. Post-money valuation probably no higher than $12M (2). Pre-money valuation was approx. Pre-money valuation was approx.

Pre-Money Valuation 113

Pre-Money Valuation Liquidation Preference Dividend Common Stock 113

Gust

OCTOBER 20, 2011

Individual accredited investors in typical angel deals put personal capital at risk for an equity share of growth-oriented, start-up companies. In 2011, the valuation of pre-revenue, start-up companies is typically in the range of $1.5–$2.5 In 2011, the valuation of pre-revenue, start-up companies is typically in the range of $1.5–$2.5

Valuation 146

Valuation Pre-Money Valuation Intellectual Property Technical Review 146

Berkonomics

DECEMBER 17, 2020

Let’s take a few minutes to examine the kind of equity financing available to small or early stage businesses. In most cases, these applicants for equity funding must be rooted in technology to apply to this limited discussion. Some can supply more when syndicating with other such groups. Friends and family investors.

Equity 62

Equity Finance Liquidity Event Angel Groups 62

Genuine VC

NOVEMBER 12, 2012

In other words, new investors must use their leverage in the discussions to proactively change those pre-existing terms rather than focus on price, new terms relevant only to this deal, or other aspects of this specific round where they have an interest in influencing (like syndicate composition or allocation).

Finance 128

Finance Mezzanine Valuation Seed Stage 128

David Teten

DECEMBER 3, 2019

Private equity and venture capital investors are copying our sisters in the hedge fund world: we’re trying to automate more of our job. . In the private equity universe, most Partners have primary training as deal-makers, not as managers. (To see the video above, please click the image, and then click on the Play button.).

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

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. Third, founders at this stage have an incentive to minimize dilution at the point when their equity is the least valuable.

Seed Stage 120

Seed Stage Early Stage Cofounder Finance 120

Rob Go

AUGUST 26, 2013

Often priced equity, but often convertible note. 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. or even more. Runway >12 months.

Valuation 68

Valuation Seed Stage Syndicate Syndication 68

Agile VC

FEBRUARY 28, 2012

If you and all the people around your startup (co-founders, advisors, existing investors) feel strongly that the company A) could benefit from additional equity capital at this time and B) you’ve accomplished value accretive milestones since your last round of funding, then it might make sense to talk with potential new investors.

Early Stage 100

Early Stage Syndicate Syndication Silicon Valley 100

Agile VC

SEPTEMBER 27, 2011

Providence Equity invested $100M at a $1B valuation not because of their technology or product, but because the network owners contributed a lot of valuable content… or at least access to it for 2years. Hulu’s genesis was all about content rights so it’s no surprise it’s exit is too.

Silicon Valley 100

Silicon Valley Seed Stage Syndicate Syndication 100

Agile VC

JANUARY 27, 2012

Multi-billion dollar valuations for late stage startups like Dropbox, et al. It’s also worth noting that in the last 5-10 years breakout startups have remained private much longer than in decades past, so more of the equity appreciation has been captured by private investors than public market investors.

Hockey Stick 113

Hockey Stick Seed Stage Silicon Valley Syndicate 113

Professor VC

JANUARY 17, 2008

One of my comments was that we would likely see more institutionalization of angel groups and syndication of deals among groups. Another comment which probably deserves more discussion is around valuation. He also said they typically only invest at a $1 million pre-money valuation or less. My facebook can beat up your facebook.

Pre-Money Valuation 28

Pre-Money Valuation Angel Investor Angel Groups Valuation 28

Agile VC

FEBRUARY 2, 2012

I’ll focus for now on the business itself, there’s plenty of other info on the web if you care to understand the equity ownership or financing history of Facebook and frankly this has been fairly well known for awhile. ==. Here’s my first look at Facebook viewed through the lens of their IPO filing. Facebook, Inc.

IPO 100

IPO South Korea Venezuela Revenue 100

Professor VC

JULY 25, 2013

Another closely related area is that of variable pricing on convertible debt or equity deals where different investors have different caps. Another area where I''m not sure I stand is with some of the more formal referral and syndication programs that are emerging now. Thank you sir, may I have another!"

Term Sheet 46

Term Sheet Silicon Valley Syndicate Syndication 46

Tim Keane

APRIL 12, 2006

valuation than the previous round. If the investors ideal size is smaller than your need, you ought to ask about syndication. If they don’t like to syndicate, or don’t have a track record of doing it, you will want to consider your options. It is used by some investors who like the deal but can’t come to terms on valuation.

Entrepreneur 60

Entrepreneur Valuation Sweat Equity Common Stock 60

Both Sides of the Table

NOVEMBER 8, 2010

They monetize via high-priced advertisements during the prime-time airing on TV, via syndication to international audiences or less-watched channels after the original series has run and via DVD sales in retail channels. I would reduce my equity stake much further. I would reduce my equity stake much further.

Video 292

Video Technical Review Advertising Distribution 292

Rob Go

JANUARY 7, 2013

Actually, growth equity firms I find are best at this, because they have very specific financial criteria that they look for, such as ranges for revenue, ebitda, growth, etc. Syndicate Composition: NextView + Seed Funds + Angels: 9. Some VCs have very clear “here’s what we look for” sections on their websites.

Portfolio 49

Portfolio Seed Stage Cofounder B2B 49

Pascal's View

AUGUST 22, 2009

To be clear, there are plenty of strong venture-backed companies today that should be public but that do not meet the valuation or liquidity criteria of the three large remaining investment banks (more on this below). Mergers trigger job losses; IPO’s create jobs.

IPO 40

IPO Merger Institutional Investors Venture Capital 40

Berkonomics

APRIL 3, 2014

There are three classes of equity investors for early stage businesses that we have not yet considered. And even though angel groups syndicate their best deals within their respective associated networks, it is always best to apply to the angel groups nearest your physical location.

Equity 92

Equity Finance Liquidity Event Angel Groups 92

Genuine VC

JULY 8, 2014

raised, the first non-friends-and-family capital, comprised of one to three institutional seed investors or larger VC funds, on a priced equity structure (though sometimes convertible note), with a valuation mechanism in place priced in the single digit millions.

Early Stage 188

Early Stage Seed Stage Syndication Syndicate 188

Professor VC

JUNE 20, 2011

But of course, the model had us requiring only $10M equity to breakeven and to achieve $185M in revenues in 2008 (the magic Year 5 in all business plans). The business model (OEM through broadband and home security companies for mass distribution) if not specific product functionality has remained largely the same.

San Jose 28

San Jose Angel Investor Term Sheet Venture Capital 28

www.paulgraham.com

APRIL 28, 2010

Another concept we need to introduce now is valuation. I say "in theory" because in early stageinvesting, valuations are voodoo. As a company gets more established,its valuation gets closer to an actual market value. As a company gets more established,its valuation gets closer to an actual market value. Better how?

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

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.

Recapitalization 70

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

David Teten

NOVEMBER 15, 2013

Each new investor tends to raise valuations and lower returns for all the other competitive investors. The average equity fund investor earned a market return of only 4.25%. This option-based valuation methodology can also be used to explain the early 2000 internet/telecom bubble in the public markets.

Management 114

Management Pre-Money Valuation Venture Capital New Hampshire 114

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

www.paulgraham.com

APRIL 28, 2010

Mechanics Angel investors often syndicate deals, which means they join togetherto invest on the same terms. In a syndicate there is usually a"lead" investor who negotiates the terms with the startup. Dont feel like you have to join a syndicate, though. The valuation determines how much stock you get. million, and youget.05/1.05,

Angel Investor 63

Angel Investor Syndication Syndicate Dilution 63

Agile VC

FEBRUARY 9, 2012

In the modern age public market investors, whether they be focused on equities (stocks), fixed income (bonds), currencies, commodities, or derivatives of these, all have access to essentially the same investment choices and the same body of information. It turns out selecting is arguably the least important of the three. How do you win?

Seed Stage 100

Seed Stage Framework Silicon Valley Early Stage 100