ithacaVC

APRIL 25, 2014

I thought it might be useful to post up a model cap table ( Cap Table Model with Waterfall ). This cap table can be used by a pre-funded startup and then a financing can be layered in. In other words, it shows both pre-money and post-money very clearly. Dealing with VCs Management Startup Life'

Cap Table 79

Cap Table Preferred Stock Pre-Money Valuation Participating Preferred 79

Haystack

APRIL 10, 2018

As evidenced by today’s investor panel which included managers who focus on pre-seed, or traditional seed, or larger VC funds that can go from seed all the way to growth. with a median post-money valuation of $10.7M — these are the highest Pitchbook has recorded. Um… wow. This was interesting to me.

Seed Stage 60

Seed Stage San Francisco Ratchet Silicon Valley 60

ithacaVC

JANUARY 14, 2014

I was giving some advice the other day on how to approach Series B investors in terms of valuation. Company X raised its Series A at a pre-money valuation of $5mm and it raised $4mm dollars. So the post-money valuation after the Series A was $9mm. Dealing with VCs Management Startup Life'

Pre-Money Valuation 58

Pre-Money Valuation Post-Money Valuation Valuation Term Sheet 58

Feld Thoughts

JULY 14, 2015

A company raises $1m of seed money from angels in a convertible note with a $6m cap. 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. So they recapitalize the company.

Recapitalization 70

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

Agile VC

DECEMBER 6, 2012

A little more inside baseball from the VC biz… why VC’s rarely make “crossover” investments, with capital from multiple funds the VC firm manages invested in a single startup (see note 1). I was talking with an entrepreneur recently about this phenomenon.

LP 178

LP Balance Sheet Differentiation Limited Partner 178

Berkonomics

APRIL 6, 2012

Is the price paid for shares by previous investors excessive, creating a post-money valuation too high for the actual value of the company? These include “tag along rights” which allow investors to sell some shares when others, such as management or founders, sell any shares.

Limited Liability Company 79

Limited Liability Company Post-Money Valuation Valuation Down Round 79

Ben's Blog

JULY 16, 2013

In June of 2000, I raised money at an $820M post-money valuation. By the end of the year and despite more than doubling bookings, I could not raise money at any price in the private markets and was forced to take the company public at a $560M post-money valuation. Things change.

Down Round 73

Down Round Marketing Preferred Stock Post-Money Valuation 73

Both Sides of the Table

AUGUST 1, 2010

In these cases we proactively offer to lead their next round of financing. The investor strategy is really determined by the management team. If we come to an agreement and fund the HUGE benefit to entrepreneurs is that they don’t have to trek up and down Sand Hill Road looking for money.

Post-Money Valuation 298

Post-Money Valuation Term Sheet Warrant Partner 298

Seeing Both Sides

JULY 15, 2009

VCs have an unfair advantage when it comes to financings. A typical start-up company will do 2-4 venture capital financings before a successful exit (or, conversely, an ignomious ending). In contrast, the typical venture capitalist, either individually or across their partnership, will do 5-10 financings in any given year.

Pre-Money Valuation 49

Pre-Money Valuation Option Pool Stock Options Post-Money Valuation 49

VC Adventure

NOVEMBER 14, 2012

I think this is driven both by entrepreneurs who want to take risk out of their business with more cash on the balance sheet, as well as by investors who, despite higher frothy valuations, are looking to hit certain ownership thresholds. Maybe significantly. But I think think this is a mistake.

Balance Sheet 77

Balance Sheet Valuation Post-Money Valuation Early Stage 77

ithacaVC

JANUARY 24, 2013

Having a relatively small about of convertible debt on your balance sheet prior to your Series A financing is not a bad thing. In our example, if the premoney is $3mm and the Series A new investors are putting in $1mm, then they expect to own 25% of the company after the closing ($1mm invested/$4mm post money).

Valuation 53

Valuation Balance Sheet Option Pool Dilution 53

VC Adventure

NOVEMBER 14, 2012

I think this is driven both by entrepreneurs who want to take risk out of their business with more cash on the balance sheet, as well as by investors who, despite higher frothy valuations, are looking to hit certain ownership thresholds. Maybe significantly. But I think think this is a mistake.

Balance Sheet 48

Balance Sheet Valuation Post-Money Valuation Early Stage 48

Ben's Blog

JULY 16, 2013

In June of 2000, I raised money at an $820M post-money valuation. By the end of the year and despite more than doubling bookings, I could not raise money at any price in the private markets and was forced to take the company public at a $560M post-money valuation. Things change.

Marketing 36

Marketing Preferred Stock Post-Money Valuation Down Round 36

Seeing Both Sides

JANUARY 11, 2011

If different investors have invested at very different prices, or if the entrepreneur has not made money before and this is their first shot, there can be greater tension inserted into a naturally tense situation. But the Series C investor who just invested at an $80 million post-money valuation would be bitterly disappointed.

Post-Money Valuation 40

Post-Money Valuation Dilution Cofounder Valuation 40

Professor VC

FEBRUARY 12, 2015

Former students who are readers of this blog may recall the Amazon IPO case from Entrepreneurial Finance class. It''s previous financing round was a little over a year prior to the IPO and was a $8M raise at a $60M pre-money valuation led by John Doerr of Kleiner Perkins. or a market cap of $800M. And this is not it."

Las Vegas 28

Las Vegas IPO Pre-Money Valuation Valuation 28

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.

Pre-Money Valuation 20

Pre-Money Valuation Portfolio Post-Money Valuation Valuation 20