Both Sides of the Table

JULY 23, 2014

We are in a bubble (with so many private $1bn+ valuations). Limited Partners or LPs (the people who invest into VC funds) have taken notice as 2014 is by all accounts the busiest year for LPs since the Great Recession began. The “big boom” in startup financing started around March 2009?—?more Where are we today?

Technical Review 398

Technical Review Venture Capital Valuation Pre-Money Valuation 398

View from Seed

OCTOBER 21, 2014

Using NextView as an example, since we both seek to lead the seed round and only lead during this round, I’ve seen this trend manifest in one of two ways: In a priced round, the entrepreneur will often share their valuation ask (or a stated floor) for the pre-money valuation of their company much sooner in the process.

Valuation 336

Valuation Founder Seed Stage Angel Investor 336

Both Sides of the Table

FEBRUARY 12, 2019

why the hell has seed financing declined so much in the past 3 years?? You might like to think that a bunch of savvy venture capitalists saw a market niche for raising smaller funds or perhaps there was a generational shift where disgruntled junior partners spun out of bigger firms to start their own gigs.

Venture Capital 328

Venture Capital Technical Review Seed Stage IPO 328

View from Seed

MAY 2, 2019

My experience is that YC partners tend to encourage founders to hold off on taking more money shortly after getting into YC, arguing that their value will increase significantly in just a few months. So your net dilution may end up worse and you may miss out on working with a really hands-on pre-seed partner early in your company’s life.

Early Stage 214

Early Stage Dilution Valuation .Net 214

VC Adventure

JUNE 14, 2022

Exacerbating this speed were valuations that in many cases were out of touch with reality, putting more pressure early in a company’s relationship with its new financing partners around company performance and trajectory.

Technical Review 150

Technical Review Due Diligence Portfolio Venture Capital 150

View from Seed

SEPTEMBER 13, 2018

Effective) post-money valuation. Even though the traction milestone is the same, the history is not, and that context will meaningfully alter the ability to successfully raise a solid Series A financing. How much time has elapsed since company founding. How much total capital has been put into the company since founding. raise $1.8M

Seed Stage 136

Seed Stage Post-Money Valuation Valuation Startup 136

YoungUpstarts

OCTOBER 28, 2015

by John Vrionis, partner at Lightspeed Venture Partners. This article highlights their advice on issues ranging from financing to patent trolls: While startups may believe lawyers are too costly, working with one early on avoids potentially serious problems later. ” The Cost of Financing. Convertible Securities.

Convertible Security 100

Convertible Security IP Technical Review Software Review 100

View from Seed

MARCH 24, 2021

What Are Your Valuation Expectations? But mainly we did it because these corporate VCs were among the only groups willing to invest at PayPal’s somewhat inflated post-money valuation, during the middle of the dot-com crash when traditional VCs pulled back sharply and other sources of funding were constrained.” ” (Rob Go).

Seed Stage 177

Seed Stage Hiring IPO Analytics 177

Both Sides of the Table

SEPTEMBER 10, 2021

And the loosening of federal monetary policies, particularly in the US, has pushed more dollars into the venture ecosystems at every stage of financing. What Has Changed in Financing? On the one hand, you’re over paying for every investment and valuations aren’t rational. even before the pandemic itself has been fully tamed.

Pre-Money Valuation 471

Pre-Money Valuation Valuation Venture Capital Early Stage 471

Both Sides of the Table

JUNE 22, 2011

In addition to FOMO it is partly driven by massive increase in valuations for earlier-stage companies who raised money at bit seed prices but who still have product risk. million pre-money valuation is now raising $1 million at a $12 million valuation the next investor has nowhere to go but up (or sit out the investment).

Saudi Arabia 309

Saudi Arabia Valuation IPO Technical Review 309

YoungUpstarts

MAY 14, 2018

Marks, founder and managing partner of High Rock Partners and author of “ Middle Market M & A: Handbook for Investment Banking and Business Consulting “ Conventional wisdom says that a company grows by reaching new customers, increasing its workforce, expanding marketing or launching new products or services.

Acquisition 124

Acquisition Finance Raleigh Mezzanine 124

ReadWriteStart

JULY 2, 2022

Conforming with Torchbankz, the dropshipping industry is expected to reach a market valuation of $557.9 All you have to do is partner with wholesalers and manufacturers to sell their products under your brand name. billion before 2025. Implement enterprise resource planning software to customize and automate the process straight away.

Cost 140

Cost Software Review Technical Review Cloud 140

Hearpreneur

JANUARY 22, 2023

#13- Sustainability and ethical investing Photo Credit: Zach Larsen I'm really excited to see how technology will continue to shape the personal finance space in 2023. All of these changes should make managing our finances easier and more accessible for everyone. #19- Thanks to Paige Arnof-Fenn, Mavens & Moguls ! #29-

Artificial Inteligence 127

Artificial Inteligence Technical Review Entrepreneur Social Media 127

Hunter Walker

NOVEMBER 10, 2024

Most seed shops are smaller AUM firms, where the partners own/share the economics. Most multistage firms have multiple levels of partners, with many needing to prove themselves to get momentum within a fund cycle. Now even the Series A investor is often playing a different game than the seed VCs.

Cap Table 97

Cap Table Dilution Valuation .Net 97

Startup Professionals Musings

APRIL 11, 2021

Early partners or co-founders often drop out of the picture early due to disagreements, and you forget about them, but they don’t forget about the verbal or email promises you made. Later, when your venture is trying to close on financing, or even going public, that forgotten partner surfaces, demanding their original share.

Cost 363

Cost Non-Compete Accredited Investor Cofounder 363

Both Sides of the Table

SEPTEMBER 22, 2012

After all, growth equals high valuations and loads of venture capital! Instant growth = huge valuation from follow-on investors = big VC mark-up on our quarterly reports = LP interest. Our partners have invested in more than dozen companies that became worth more than a billion dollars and that has disproportionately drive returns.

Silicon Valley 390

Silicon Valley Venture Capital Startup Technical Review 390

Both Sides of the Table

MARCH 3, 2012

But it was early 2009 and not many companies were getting new financings at all so I thought they should take the deal. He told me he wondered if we should consider switching partners so the company could get more money and at a higher price. I know it’s tempting to switch partners.

Term Sheet 356

Term Sheet Silicon Valley Reputation Partner 356

David Teten

JANUARY 19, 2021

(co-written with Jamie Finney, Founding Partner at Greater Colorado Venture Fund. Similar to the explosion of seed funds in the past decade, we (and some limited partners too ) believe these Flexible VCs are on the forefront of what will become a major segment of the venture ecosystem. Yes, via conversion rights at a valuation cap.

Cofounder 78

Cofounder Technical Review Equity Dividend 78

Berkonomics

AUGUST 24, 2023

We have previously made the case that professional investors demand more in the form of restrictive covenants and lower valuations. In a number of cases, these VC partners have made the difference between success and failure or at least growth vs. stagnation. This statement could be considered controversial.

Covenant 118

Covenant Angel Investor Valuation Later Stage 118

Both Sides of the Table

SEPTEMBER 29, 2009

They should heed the age old advice that raising slightly more money while you can is always better than trying to optimize future valuations. Should VC’s really be impacted by public market valuations when the money that they’re investing today should be for returns in 7-10 years? Short answer – yes.

Burn Rate 263

Burn Rate Valuation Pre-Money Valuation Private Equity 263

View from Seed

JANUARY 27, 2021

. $100M is a meaningful increase from our $50M third fund, though it’s still quite small in the grand scheme of venture, especially amid the recent wave of late stage financings and SPACs. We believe that this fund is the perfect size for us to be the best possible partners to early-stage entrepreneurs today.

LP 411

LP Early Stage Seed Stage Venture Capital 411

View from Seed

DECEMBER 4, 2019

Over the last 10 years, we’ve been in a bull market with considerable froth in late stage financing activity and valuations. The trends described above in VC performance have an upstream effect on Limited Partners which is somewhat counter-intuitive. This would suggest that TVPI would be performing well. LP Constraints.

LP 256

LP IRR Distribution Portfolio 256

Both Sides of the Table

JULY 26, 2022

We’ve also worked with our Partner, Dana Kibler who is also our CFO for nearly 20 years. Photo by Scott Clark for Upfront Ventures Focus on Cash While the headlines in 2020 & 2021 touted many massive fundraising events and heady valuations, we believed that for savvy investors it also represented an opportunity for real financial gains.

San Francisco 408

San Francisco Early Stage Venture Capital Los Angeles 408

David Teten

DECEMBER 3, 2019

But in business, you want a lot of partners. In the private equity universe, most Partners have primary training as deal-makers, not as managers. See Bessemer Venture Partners’ A comprehensive guide to security for startups. Cobalt for General Partners helps GPs to optimize their fundraising strategy. 1) Manage the firm

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

VC Cafe

JANUARY 2, 2023

On a global level, venture financing of private companies dropped 33% year over year, from a record $733B in 2021 to $490B in 2022. As Vintage Venture Partners put it in a recent presentation shared in Tel Aviv , 2022 started off well but fell of a cliff in the second half (the slides were shared on Twitter by Amitai Ziv from Tech 12 ).

Valuation 159

Valuation Down Round Israel Venture Capital 159

Berkonomics

AUGUST 3, 2023

Some businesses require very little capital and the founder can self-finance the enterprise and retain 100% of its ownership and control from ignition through liquidity event (startup through sale). Better yet, the valuation of your enterprise is often higher than if the same investment were taken from a professional investor.

Private Equity 118

Private Equity Valuation Cap Table Accredited Investor 118

Startup Company Lawyer

MARCH 14, 2010

After the recent announcement of the Series Seed Financing documents by Marc Andreesen, Brad Feld points out that there are now four sets of “open source&# equity seed financing documents: TechStars Model Seed Funding Documents (by Cooley). Y Combinator Series AA Equity Financing Documents (by WSGR). under $500K).

Finance 70

Finance Software Review Term Sheet Liquidation Preference 70

Berkonomics

AUGUST 10, 2023

From the moment such an investor looks seriously at your company, the investor or VC partner is thinking of the end game, the ultimate sale of the company or even of an eventual initial public offering. There is no middle ground. Draconian terms?

Liquidity Event 116

Liquidity Event Initial Public Offering Dividend Valuation 116

Both Sides of the Table

AUGUST 14, 2017

Executives run the day-to-day so often the board is more involved as a sparring partner at key intervals. ICOs certainly have a place in startup financing. In fact, as one Twitter commenter observed to what do board do, “Often, not much.” That’s true. The administrative work we actually do at board meetings?

Cofounder 217

Cofounder Stock Options Equity Technical Review 217

View from Seed

SEPTEMBER 23, 2019

To provide relevant perspective, listing past convertible note(s) and/or equity financing(s) including total round size and valuation (caps) is helpful. What not to include is directly stating valuation expectations. My partner Rob has previously written some thoughts on how to approach that conversation.

Cap Table 211

Cap Table Seed Stage Valuation Dilution 211

View from Seed

JANUARY 11, 2023

We wholeheartedly believe in the potential of each company we select; the smaller batch size allows the NextView partners, who possess deep operating and founding experiences at companies like LinkedIn, PayPal, eBay, and Blue Apron, the space to spend meaningful one-on-one time with each founder every single week.

Programming 156

Programming San Francisco Sacramento Founder 156

View from Seed

FEBRUARY 16, 2021

These startups completed an intense 10-week program featuring hands-on, personalized engagement from NextView partners to push the company forward, peer communications, expert education sessions, advisor introductions, and more. We will leverage the standard YC post-money SAFE document with a valuation cap and no discount.

Seed Stage 285

Seed Stage Programming Finance B2B 285

Both Sides of the Table

AUGUST 24, 2015

I made my calls around to a few firms today to hear how their partner meetings went. So why invest in that period of uncertainty unless it’s early-stage and thus valuation matters less. You might also favor a quicker close at a slightly lower valuation than you had hoped in order to decrease risk.

Stock 150

Stock Finance Marketing Valuation 150

Both Sides of the Table

MARCH 1, 2011

The Union Square Ventures partners started whispering in his ear that “it’s all about social now”. Advice on startups raising capital: if you raise your first round at a super high valuation and don’t grow into your valuation, it makes it very hard to live for the long game. Contest details here :

Semantic 302

Semantic Acquisition Valuation Angel Investor 302

OnlyOnce

OCTOBER 31, 2013

Fred Wilson has been a venture investor and director in Return Path since 2000, first with Flatiron Partners and then with Union Square Ventures. Here are a few tips for ending up with the best long-term partner as an investor. Similarly, I’d always sacrifice valuation for a clean security. Selecting Your Investors.

Valuation 133

Valuation Term Sheet B2C Security 133

www.seriesseed.com

DECEMBER 9, 2012

Series Seed Financing Documents Blog. Series Seed Financing Documents. Listed below are links to weblogs that reference Series Seed Financing Documents : 1 Reblog. Sets the valuation at the time of the investment. My quest is to simplify financing for seed stage investments. Series Seed Financing Documents.

Finance 40

Finance Term Sheet Vesting LLC 40

Startup Professionals Musings

OCTOBER 19, 2015

That’s why I recommend that they find a co-founder who loves business challenges, including marketing and finance. Patents can raise startup valuation by investors by as much as a million dollars, and will attract acquisitions rather than copycats. Patents are not worth the effort, since big companies will win.

Technical Review 120

Technical Review Intellectual Property Cofounder Bootstrapping 120