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The Changing Structure of the VC Industry

Both Sides of the Table

pre-money valuation you certainly would want to exercise your right to continue investing if you had prorata rights. Just 3 years ago there was talk of institutional investors “not being able to write small enough checks.” ” Stated simply – if you seed funded Uber at $4.5m The iPhone was released.

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The Power of Quora & Why Benchmark was Right to Pay Up

Both Sides of the Table

Obviously it is build on a social network “follow people&# model that is asymmetric like Twitter. At an $86 million, pre-money valuation Benchmark sure did pay up for this investment. So in a way it has built in game mechanics. And they are trying to bake in user adoption into the design of the product.

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LinkedIn: The Series A Fundraising Story ? AGILEVC

Agile VC

Online social networking is a concept still being evangelized even in Silicon Valley… Friendster is in private beta (wasn’t until Oct 2003 they received Google acquisition offer which they turned down for Kleiner/Benchmark round). First and foremost, we believed there would be a “professional” social network.

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What are the most valuable recommendations in order to raise money from VCs connected via Gust?

Gust

There’s no use banging your head against a VC’s door with a social network venture if they only invest in biotech companies. Investor profiles on the platform are created by the investors themselves, and tell you exactly who the group’s leaders are, and what they are looking for.

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ProfessorVC: Touched by an Angel

Professor VC

Again, I see nothing wrong with this, although entrepreneurs often prefer convertible debt as it defers the valuation discussion and leaves the Series A price for the venture firm to set. He also said they typically only invest at a $1 million pre-money valuation or less. A Lot of Horn Tooting over a Kazoo sized deal.

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Finance Fridays: Getting Started – Allocating Equity and Founder’s Investment

Feld Thoughts

Through a series of conversations, Jane and Dick have come up with the idea to develop a social network tailored to the medical community. Jane felt comfortable with receiving 10% for $50k, but no less, so they agreed on a $450k pre money valuation of their startup.

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Fear vs. Greed at Facebook

Altgate

To estimate how much the founders and other insiders owned after each of the startup’s first three rounds of financing, we used the two major factors that affect dilution: the capital raised by the startup and the pre-money valuation it received. million, with a valuation of $10 million. As shown in Figure 9.5