View from Seed

MARCH 24, 2021

Taking Corporate Venture Money: When it Makes Sense “PayPal took on these investors in small part because it gave us an imprimatur in the stodgy and regulated world of financial services. Finance is about reporting on historical performance and future planning through the lens of financial metrics.” ” (Lee Hower).

Seed Stage 177

Seed Stage Hiring IPO Analytics 177

Agile VC

DECEMBER 6, 2012

This person is an experienced CEO and a veteran of several startups, yet appreciating this nuance of how VC’s operate their business was relatively unfamiliar to him. Well at this juncture Startup X’s valuation is presumably a lot higher than it was at the Series A, maybe even 5-10x+ higher.

LP 178

LP Balance Sheet Differentiation Limited Partner 178

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

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. The X and Y are negotiated, with the Y typically being a date shortly before the convertible debt is all used up by the company in its operations. I am a big fan of convertible debt (with appropriate terms).

Valuation 53

Valuation Balance Sheet Option Pool Dilution 53

View from Seed

SEPTEMBER 13, 2018

Effective) post-money valuation. to build sitting at a $17M post-money is going to look fundamentally different than that exactly comparable startup which took only two years and $2M total capital at a $10M post- to get there. How much time has elapsed since company founding. 100K in MRR was cited).

Seed Stage 136

Seed Stage Post-Money Valuation Valuation Startup 136

Lightspeed Venture Partners

SEPTEMBER 23, 2012

post money valuation. Mark Cuban offered $300k for 33% of the company, implying a $900k post money valuation. implying a $600k post money valuation. The company ended up negotiating with Cuban and settled on $300k for 30% of the company, or a $1M post money valuation.

Pre-Money Valuation 164

Pre-Money Valuation Post-Money Valuation Valuation Dilution 164