View from Seed

JUNE 11, 2019

At this point, founders find themselves in a luxurious situation of being able to build the best possible syndicate. I believe it’s more important to optimize on the right lead investor vs. the highest valuations at the seed stage (within reason). It’s not necessary to nail down every element of your syndicate simultaneously.

Syndicate 202

Syndicate Syndication Seed Stage Lead Investor 202

thebarefootvc

MAY 8, 2012

The best VCs are the ones that balance their optimism, vision and enthusiasm for startups with realism based on very real constraints (the primary one being his/her own time, but also includes market development and exit timing). Too many pivots, and you can lose the market opportunity, even with the greatest idea.

Venture Capital 78

Venture Capital Syndicate Syndication Bandwidth 78

View from Seed

APRIL 30, 2015

In many instances, you raise an institutional round to either fulfill a product strategy or go-to-market strategy or you’re increasing sales and marketing hires, so you have better visibility into what needs to happen in the next six, 12, 18 months. Reason being, there’s more of a defined strategy for the company.

Term Sheet 120

Term Sheet Equity Startup Seed Stage 120

Both Sides of the Table

APRIL 27, 2014

I started in 2007 with a thesis that my primary investment decision would be about the team (70%) and only afterward about the market opportunity (30%). You have to decide how hard to help with downstream marketing for your deals. I guess if you’re in high-volume, low-differentiation mode perhaps this is efficient for you.

Cofounder 374

Cofounder Syndicate Syndication Early Stage 374

David Teten

DECEMBER 3, 2019

In liquid markets, most of the calories expended on technology and analytics are focused on trade selection, or “ origination ”. I use another live Google doc to maintain my database of companies I’m marketing to other VCs. 2) Market . Many tools designed for B2B marketing in general are also relevant to investors.

Technical Review 78

Technical Review Software Review Analytics Private Equity 78

David Teten

SEPTEMBER 6, 2018

2) Marketing. See How Private Equity and VC Investors Are Using Social Media. See my summary on how lead investors think about building out their syndicate. . 10) Time, market, and exit investment. See my overview of sales technology tools useful for B2B sales. 3) Raise capital. 5) Manage deal flow. 6) Due diligence.

Technical Review 60

Technical Review Private Equity Management Cap Table 60

David Teten

SEPTEMBER 6, 2018

2) Marketing. See How Private Equity and VC Investors Are Using Social Media. See my summary on how lead investors think about building out their syndicate. . 10) Time, market, and exit investment. See my overview of sales technology tools useful for B2B sales. 3) Raise capital. 5) Manage deal flow. 6) Due diligence.

Technical Review 60

Technical Review Private Equity Management Cap Table 60

Pascal's View

JULY 9, 2017

This is a fundamental issue that does, indeed, boil down to understanding the post-money valuation of a company. At its core, this issue points to the lack of understanding about the importance of post-money valuation by both entrepreneurs and investors. But it is also a topic that many find esoteric and difficult to grasp.

Post-Money Valuation 49

Post-Money Valuation Valuation Cap Table Covenant 49

David Teten

JANUARY 19, 2021

The value ascribed by subsequent investors (in a secondary); buyers (acquisition); or the public markets (IPO). Yes, via conversion rights at a valuation cap. Yes, via conversion rights at a valuation cap. Coinvestors: Flexible VC terms have not been standardized, which may make the investment harder to syndicate.

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.

Syndicate 166

Syndicate Syndication Seed Stage Valuation 166

Genuine VC

JULY 8, 2014

As the VC seed market has institutionalized, especially over the past five years, there has emerged a prototypical seed round profile: $1M-$1.5M As the VC seed market has institutionalized, especially over the past five years, there has emerged a prototypical seed round profile: $1M-$1.5M

Early Stage 188

Early Stage Seed Stage Syndicate Syndication 188

View from Seed

AUGUST 30, 2019

team, market, product, stage/traction) but also the potential deal itself (i.e. how much the company is raising, valuation expectations, round/syndicate dynamics, etc.). I can see this being a doable deal at an $X pre-money valuation with a $Y check from us. ” .

Pre-Money Valuation 174

Pre-Money Valuation Syndicate Syndication Valuation 174

View from Seed

AUGUST 20, 2014

If the company is doing really well, the VC will have an incentive to try to do more of the next round at perhaps not the highest possible valuation. Their aggressiveness sends a signal to the market. Strong credibility in the market if the round is led by a respected seed fund. The round can come together quickly.

Startup 301

Startup Syndicate Syndication Boston 301

Lightspeed Venture Partners

SEPTEMBER 21, 2013

Josh Brooks, who ran marketing for MySpace for three years, is the founder of a company that lets users take photos form their phones, and then use those photos to send postcards in the real world to their friends and family. to fund the company at a $6M post money valuation from a number of investors including Selena Gomez.

Pre-Money Valuation 167

Pre-Money Valuation Valuation Dilution Distribution 167

David Teten

SEPTEMBER 23, 2017

The extreme example of this are algorithmic investors in the public markets, who design algorithms which trade on the designer’s behalf, as opposed to making trading decisions directly. High-frequency trading, algorithmic by its nature, is estimated to account for at least 50% of US equity markets trading volume. . 1) Market fund.

Private Equity 60

Private Equity Venture Capital Equity Technical Review 60

Duct Tape Marketing

DECEMBER 14, 2017

Transcript of How to Prepare to Sell Your Business written by John Jantsch read more at Duct Tape Marketing. John Jantsch: This episode of the Duck Tape Marketing Podcast is sponsored by Podcast Bookers, podcastbookers.com. Hello and welcome to another episode of the Duct Tape Marketing Podcast. Back to Podcast. Transcript.

Kansas City 62

Kansas City CTO Hire Las Vegas Software Developers 62

Genuine VC

JULY 30, 2012

By communicating pricing expectations with potential lead investors, I mean sharing either an “ask” or even stated floor for the pre-money valuation of the company (with a priced preferred round) or explicitly stating a valuation cap (for convertible note round). Above market.

Valuation 136

Valuation Pre-Money Valuation Angel Investor Syndicate 136

The Startup Magazine

JANUARY 17, 2024

Entrepreneurs also encounter the intricacies of terms and valuation. You can also consider doing syndication, much like how real estate syndicators make money where they pool their resources in order to allow investors to access larger and more profitable deals than they could alone.

Due Diligence 148

Due Diligence Angel Investor Syndication Syndicate 148

View from Seed

JUNE 10, 2020

The partners at NextView hold sessions more than once per week to push the participants’ thinking and actions to strive towards making significant advances finding true-product market fit. We proactively look to build friendly syndicates for our Seed investments, and welcome collaborating to build together.

Cofounder 177

Cofounder Syndication Syndicate Alabama 177

Rob Go

MAY 20, 2014

As seed rounds have become much more common, it’s been said that the “seed is the new series A” This is sort of true – it used to be that Series A’s would often happen pre-product, and certainly before product-market fit. Waiting 6 months longer to raise may improve valuation in the short term.

Valuation 76

Valuation Dilution Post-Money Valuation Syndicate 76

David Teten

JULY 12, 2017

Although EquityZen is primarily an online marketplace for secondary shares in private companies, they also offer syndicated primary investments. Many VCs and family offices market themselves based on their network, internal resources, and other levers to accelerate value creation. . Market Insight. Fundraising is burdensome.

Syndicate 60

Syndicate Syndication Institutional Investors LP 60

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.” enterprise software license sales) that is no longer trendy.

Later Stage 143

Later Stage Syndication Syndicate Portfolio 143

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. I began asking around who the likely investors were for such a market. It is, of course, a very recent phenomenon.

Seed Stage 150

Seed Stage Silicon Valley Syndicate Syndication 150

Rob Go

APRIL 6, 2017

One question I know investors sometimes ask founders is “what are your valuation expectations for this round?” If you say something that is around market, you are somewhat negotiating against yourself. Why anchor yourself low when the market drives the price and you might be able to position yourself for a better deal?

Valuation 44

Valuation Syndication Syndicate Founder 44

David Teten

JULY 23, 2019

See How VCs structure a syndicate and recruit coinvestors for more on this. – Fundraising history summary, including notable current investors and last round valuation. . Though these tools can be helpful to the syndication process, I believe it will largely remain a relationship-based process for some time to come. .

Portfolio 60

Portfolio Elevator Pitch Syndicate Syndication 60

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

View from Seed

JANUARY 26, 2016

There are a number of factors that have contributed to the rise of pre-seed rounds, but the strongest have been the frothy late-stage financing market, coupled with both the scaling-up of some of the early winners in the institutional seed ecosystem and the scaling-down of some larger funds that retrenched after the financial crisis.

Seed Stage 120

Seed Stage Early Stage Cofounder Finance 120

Rob Go

MARCH 10, 2012

My friend Jordan Cooper wrote an interesting post a few days ago about some of his predictions of the venture market in 2012. Really smart people end up writing thoughtful posts on the future of the venture market pretty much every year – and I often agree with many of them like I do Jordan’s. Valuation Discipline.

Seed Stage 49

Seed Stage Syndicate Syndication Marketing 49

Hunter Walker

DECEMBER 21, 2014

BUT we went to market asserting that Homebrew should take the seed investor Board seat. This would make room for a meaningful number of other investors in the syndicate but also the concentration we needed. That was shortsighted and to be honest, I don’t even recall why we started with this assumption. No more, no less.

Cofounder 127

Cofounder Seed Stage Syndicate Syndication 127

Austin Startup

DECEMBER 20, 2010

“In the case of Mass Relevance, we were impressed both by Sam Decker and his track record and what the team had accomplished, as well as the explosive market potential of being the first important business software company to leverage the Twitter ecosystem.&#. This was enough to prove traction and market interest.

Curation 118

Curation Austin Cofounder Ruby 118

View from Seed

JUNE 30, 2015

I think it’s much better to think of things in terms of company milestones , which are: Inception –> Early Product-Market Fit –> Strong PMF –> Scaling Growth. Or maybe your market hasn’t quite developed as quickly as you’d hoped. Almost all VCs actually invest across this spectrum.

Seed Stage 120

Seed Stage Syndicate Syndication Dilution 120

Rob Go

AUGUST 26, 2013

Over the past couple years, there has been an emerging bifurcation in the seed investing market. What I am finding interesting is watching the way valuations and difficulty of raising has changed for these different flavors of seed rounds. The risks were not commensurate with the valuation relative to institutional seed rounds.

Valuation 68

Valuation Seed Stage Syndication Syndicate 68

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

Rob Go

NOVEMBER 10, 2011

I once showed a company to an investor for an investment we were syndicating. Ultimately, this firm passed because they couldn’t get comfortable with the “market size” given that they were a big fund and only targeted $1B+ opportunities. Sometimes, it’s true – the market really isn’t big enough.

Marketing 52

Marketing Angel Investor Syndication Syndicate 52

Tim Keane

APRIL 12, 2006

When they discuss market size, do they distinguish between current and addressable markets? This whole topic is of interest to investors for a number of reasons beyond the logic of market dynamics. valuation than the previous round. If the investors ideal size is smaller than your need, you ought to ask about syndication.

Entrepreneur 60

Entrepreneur Sweat Equity Valuation Common Stock 60

Rob Go

SEPTEMBER 2, 2014

This forces some level of intellectual honestly about one’s position in the market, and can push you to try to see around corners and respond. In a frothy market, rounds can get done in this way at pretty high prices (or valuation caps for notes) albeit with less value-added investors involved. Alternative funding sources.

Cram Down 66

Cram Down Institutional Investors Dilution Seed Stage 66

View from Seed

JANUARY 28, 2016

So when it comes to what the market regards as “pre-seeds,” we simply do the same things we typically do, but slightly tuned to this stage of company. This is the best time to fundraise because that’s when you are able to command a meaningfully higher valuation for your next round to minimize your own dilution.

Cofounder 120

Cofounder Finance Founder Syndication 120