Gust

OCTOBER 12, 2011

To provide some reference points, I surveyed thirteen angels groups in North American to determine their recent experience in negotiating the pre-money valuation of pre-revenue companies. See the 2010 data reported here: Current Pre-money Valuations of Pre-revenue Companies. Current Average.

Angel Groups 125

Angel Groups Valuation Pre-Money Valuation St. Louis 125

Professor VC

JANUARY 17, 2008

One of my comments was that we would likely see more institutionalization of angel groups and syndication of deals among groups. 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.

Pre-Money Valuation 28

Pre-Money Valuation Angel Investor Angel Groups Valuation 28

www.paulgraham.com

APRIL 28, 2010

Startups valuations aresupposed to rise over time. So if youre going to sell cheap stockto eminent angels, do it early, when its natural for the companyto have a low valuation. Some angel investors join together in syndicates. Any city wherepeople start startups will have one or more of them. So theyre going to raise $200,000.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76

SiliconHills

OCTOBER 22, 2013

The deals, with a median investment round of $590,000, had pre-money valuations of $2.5 And 74 percent of the deals were syndicated. Texas had 11 percent of all angel group deals in the second quarter of this year, according to the latest Halo Report.

Angel Groups 82

Angel Groups Pre-Money Valuation Silicon Valley Texas 82

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).

Valuation 136

Valuation Pre-Money Valuation Angel Investor Syndication 136

David Teten

NOVEMBER 15, 2013

I have frequently heard the expression from other investors, “We can put a lot of money to work here.” This is the psychology that drives VCs to load up a company with more capital, rationalizing that $5m at a $20m pre-money valuation is little different than $10m at a $40m pre-money valuation.

Management 114

Management Pre-Money Valuation Venture Capital New Hampshire 114

Feld Thoughts

JULY 14, 2015

The term sheet converts all the convertible debt into a post-money valuation of $100, essentially making the convertible debt worthless. The new money comes in at a pre-money valuation of $100, but includes a complete refresh of founder equity to 40% of the company. So they recapitalize the company.

Recapitalization 70

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

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

Agile VC

MAY 26, 2011

round which closed in November 2003, and the pre-money valuation between $10 million and $15 million. How to Evaluate Firms for a Seed VC Syndicate 10 July 2012, 5:13 pm What A VC Orders for Breakfast Says 27 June 2012, 10:16 am To Leave or Not to Leave as Your Startup Grows 12 June 2012, 12:21 pm. It was a $4.7M

Term Sheet 178

Term Sheet Silicon Valley Technical Review Social Network 178