Both Sides of the Table

SEPTEMBER 29, 2009

High burn-rates fueled by over investment – One of the most damning things that happened to the start-up markets in 97-00 and 05-08 was the overfunding of technology companies. This came in part due to the huge influx of money into VC but also because hedge funds and private equity shops with no VC experience wanted part of the action.

Burn Rate 263

Burn Rate Valuation Pre-Money Valuation Private Equity 263

Lightspeed Venture Partners

OCTOBER 7, 2012

I’ve been writing up reviews of this season’s Shark Tank pitches from a silicon valley VCs perspective. Doing the research to form your own view of a company’s prospects is called due diligence. So the entrepreneur was willing to accept a valuation more than $10M lower than a previous valuation.

Technical Review 110

Technical Review Technical Cofounder Valuation Pre-Money Valuation 110

BeyondVC

APRIL 12, 2005

As I think about how to make money in this competitive environment and where to make new investments, I keep coming back to the thought that there is still opportunity very early or very late in a company’s life cycle. Witness the recent Sungard deal and others. If the private investors are willing and able to pay $11.3b

LBO 78

LBO Pre-Money Valuation Technical Review Software Review 78

Gust

JULY 23, 2014

You can find this in a number of places, but in a nutshell, I prefer to invest in highly-scalable, technology-based ventures, with a particular focus on platforms, at a very, very early stage (but, oxymoronically, where there is already some type of traction). But the good thing is that this is where you can call in some reinforcements.

Angel Investor 153

Angel Investor Elevator Pitch Pre-Money Valuation Technical Review 153

Up and Running

SEPTEMBER 19, 2017

They allow you to hire more people, purchase new technology, and establish new business connections, among many other benefits. Proposed private equity deal: Eventually, this business will require private equity to provide sufficient funding to develop some of the more robust aspects of the technology that will attract Fortune 500 clients.

Private Equity 94

Private Equity Pre-Money Valuation Equity Startup 94

ReadWriteStart

OCTOBER 7, 2010

At today's roundtable we had some interesting companies and a lot of fundraising discussions, and I will review them shortly. Before I do, however, I want to talk about a thumb rule that I'd like to propose to entrepreneurs about raising money. Sub-$2 million pre-money, it is better to bootstrap.

Valuation 119

Valuation Silicon Valley Pre-Money Valuation Bootstrapping 119

Lightspeed Venture Partners

OCTOBER 29, 2012

I’m posting my analysis of the most interesting story of Shark Tank season 4 episode 7 over there, and reviewing the rest of the pitches here. The company sought to raise $125,000 for 25% of the comapny, implying a $375,000 pre money valuation. The entrepreneurs dithered for a moment at the valuation.

Pre-Money Valuation 97

Pre-Money Valuation Offshore Valuation Cofounder 97

BeyondVC

APRIL 12, 2005

As I think about how to make money in this competitive environment and where to make new investments, I keep coming back to the thought that there is still opportunity very early or very late in a company’s life cycle. Witness the recent Sungard deal and others. If the private investors are willing and able to pay $11.3b

LBO 60

LBO Pre-Money Valuation Technical Review Software Review 60

crowdSPRING Blog

APRIL 26, 2013

10 Breakthrough Technologies 2013 | MIT Technology Review – [link]. Job Titles Aren’t That Important | Matt Ferguson-Harvard Business Review – [link]. Q1 Venture Capital Spending & Number Of Deals Down, M&A Activity Drops 44 Percent And Pre-Money Valuations Plummet – [link].

Social Media 90

Social Media Small Business Design Media 90

Altgate

DECEMBER 16, 2010

@altgate Startups, Venture Capital & Everything In Between Skip to content Home Furqan Nazeeri (fn@altgate.com) ← Pre-Money Valuation vs Number of Founders Where Do Tech VCs Invest? But first, let’s look at pre-money valuation by liquidation preference.

Liquidation Preference 39

Liquidation Preference Pre-Money Valuation Term Sheet Valuation 39

Tim Keane

JANUARY 12, 2010

An average of these ranges results in a pre-money valuation of about $4MM.   If similarly situated companies are seeing $3.5MM pre-money valuations, this might become the target valuation. An average of these ranges results in a pre-money valuation of about $4MM.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

Jason Ball

SEPTEMBER 28, 2010

Don’t sweat the valuation too much. If this is your first start up, you’re not going to get a great multi-million dollar pre-money valuation, nor a lot of cash up front. Via Technology Review. The point is that Jack’s been able to raise more money, and at a higher % valuation- from day one.

Pre-Money Valuation 34

Pre-Money Valuation Valuation Dilution Venture Capital 34

Both Sides of the Table

JULY 23, 2014

pre-money valuation you certainly would want to exercise your right to continue investing if you had prorata rights. But the biggest changes in our industry have been driven by technical changes themselves to which we are just observers and fortunate beneficiaries. 2007 was the watershed year. The iPhone was released.

Technical Review 398

Technical Review Venture Capital Valuation Pre-Money Valuation 398

Both Sides of the Table

JUNE 30, 2016

So the temptation would be to ask for $5 million because that implies a $20 million pre-money valuation if you’re able to only give away 20% or a $15 million pre-money valuation of investors require 25%. A $15–20 million valuation sounds better than an $8 million valuation, doesn’t it?

Pre-Money Valuation 292

Pre-Money Valuation Valuation Early Stage Startup 292

Both Sides of the Table

AUGUST 23, 2010

I was an early user of Quora and like all new technologies they take a bit of playing with them for a while, discussing them with others and reflecting on them to let them sink in. At an $86 million, pre-money valuation Benchmark sure did pay up for this investment. Tags: Tech Market Analysis. No, really.

Silicon Valley 301

Silicon Valley Pre-Money Valuation Technical Review Software Review 301

Both Sides of the Table

MAY 28, 2018

There are many things a VC is looking for in reviewing your business plan but beyond things the like the quality of revenue, margins, OPEX and CAPEX there’s a really simple rule I call, “Cash In, Cash Out, Milestones Achieved.” Let me check my plan.” Yes, I see plans this pedestrian.

Burn Rate 247

Burn Rate Valuation Pre-Money Valuation Dilution 247

www.paulgraham.com

APRIL 28, 2010

I wassurprised recently when I realized that all the worst problems wefaced in our startup were due not to competitors, but investors.Dealing with competitors was easy by comparison. Angels whove made money in technology are preferable,for two reasons: they understand your situation, and theyre asource of contacts and advice.

Technical Review 76

Technical Review Startup Software Review Angel Investor 76