Both Sides of the Table

JUNE 22, 2011

Responses ranged from, “hey, they’re in a HUGE market&# to “it is an amazing company and their technology rocks.&# 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.

Saudi Arabia 309

Saudi Arabia Valuation IPO Technical Review 309

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

ReadWriteStart

OCTOBER 7, 2010

So at any point, if you are trying to raise money, and you are hearing from investors that you are too early and have too little validation, it may be a good thing. As a thumb rule, try to get enough validation so that you can get to at least a $2 million pre-money valuation before raising equity capital.

Valuation 119

Valuation Silicon Valley Pre-Money Valuation Bootstrapping 119

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

Lightspeed Venture Partners

OCTOBER 29, 2012

The company sought to raise $125,000 for 25% of the comapny, implying a $375,000 pre money valuation. Unsurprisingly, all the sharks passed, based on market size and valuation expectations. SBU sought $300,000 for 10% of the company, implying a $2,700,000 pre money valuation.

Pre-Money Valuation 97

Pre-Money Valuation Offshore Valuation Cofounder 97

BeyondVC

APRIL 12, 2005

Therefore, it remains quite difficult for the larger funds to dole out money in $2-4 million chunks, and the valuations are quite attractive at this stage. Where I do not want to be is in a Series B or Series C round in a "hot, momentum" company.

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).

Angel Investor 153

Angel Investor Elevator Pitch Pre-Money Valuation Technical Review 153

crowdSPRING Blog

APRIL 26, 2013

10 Breakthrough Technologies 2013 | MIT Technology Review – [link]. Q1 Venture Capital Spending & Number Of Deals Down, M&A Activity Drops 44 Percent And Pre-Money Valuations Plummet – [link]. . “First Be Inspired” - [link]. The Only Thing Apple Really Sells | Gizmodo – [link].

Social Media 90

Social Media Small Business Design Media 90

Lightspeed Venture Partners

OCTOBER 7, 2012

This includes calling current and prospective customers, understanding technology and manufacturing, doing reference calls on the founders and key executives, verifying financial and legal information and often other items specific to the company. In the real world, he would make those calls BEFORE investing, not after.

Technical Review 110

Technical Review Technical Cofounder Valuation Pre-Money Valuation 110

BeyondVC

APRIL 12, 2005

Therefore, it remains quite difficult for the larger funds to dole out money in $2-4 million chunks, and the valuations are quite attractive at this stage. Where I do not want to be is in a Series B or Series C round in a "hot, momentum" company.

LBO 60

LBO Pre-Money Valuation Technical Review Software Review 60

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

Startup Professionals Musings

NOVEMBER 26, 2012

How much is NewCo worth to investors at this point (pre-money valuation)? What percentage of NewCo does the investor own after the $1M infusion (post-money ownership percentage)? On the other hand, if the pre-money valuation is $4M, the founders ownership remains at a healthy 80% level.

Valuation 270

Valuation Pre-Money Valuation NPV Intellectual Property 270

Startup Professionals Musings

SEPTEMBER 30, 2011

How much is NewCo worth to investors at this point (pre-money valuation)? What percentage of NewCo does the investor own after the $1M infusion (post-money ownership percentage)? On the other hand, if the pre-money valuation is $4M, the founders ownership remains at a healthy 80% level.

Pre-Money Valuation 246

Pre-Money Valuation Valuation NPV Intellectual Property 246

Gust

OCTOBER 16, 2012

This summer I conducted our third annual survey of the pre-money valuation of pre-revenue companies recently funded by angel groups in North America. Access to our 2010 and 2011 surveys can be found at 2011 Valuation Survey of North American Angel Investor Groups. 2012 Valuation Survey. Organization.

Angel Groups 169

Angel Groups Valuation Pre-Money Valuation North Dakota 169

Startup Professionals Musings

SEPTEMBER 6, 2010

How much is NewCo worth to investors at this point (pre-money valuation)? What percentage of NewCo does the investor own after the $1M infusion (post-money ownership percentage)? On the other hand, if the pre-money valuation is $4M, the founders ownership remains at a healthy 80% level.

Valuation 234

Valuation Pre-Money Valuation NPV Startup 234

SoCal CTO

FEBRUARY 2, 2011

Bill Payne is an expert on how early-stage investors should look at valuation. He just post: Establishing the Pre-money Valuation of Pre-revenue Startups. Especially interesting is the Valuation Worksheet towards the end. It's required reading.

Valuation 198

Valuation Revenue Pre-Money Valuation Early Stage 198

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

VC Cafe

MARCH 12, 2025

Within the pre-seed landscape, there two primary categories of AI-related ventures: Core AI Development: This category encompasses ventures focused on fundamental advancements in artificial intelligence. These are characterised by the development of novel algorithms, foundational models, and core machine learning technologies.

Artificial Inteligence 97

Artificial Inteligence Seed Stage Israel Valuation 97

Gust

NOVEMBER 18, 2012

How much is NewCo worth to investors at this point (pre-money valuation)? What percentage of NewCo does the investor own after the $1M infusion (post-money ownership percentage)? On the other hand, if the pre-money valuation is $4M, the founders ownership remains at a healthy 80% level.

Valuation 187

Valuation Pre-Money Valuation NPV Intellectual Property 187

This is going to be BIG.

OCTOBER 10, 2014

The criteria for what is a Seed and what is a Series A for these purposes is whether or not the first round of the company was within the same year that I did the investment, and it had to be less than $750k of prior money. Well, if you group them all up, here''s what you get: Pre-Money Valuations (M). Not Launched.

Pre-Money Valuation 153

Pre-Money Valuation Dilution Valuation Term Sheet 153

View from Seed

SEPTEMBER 14, 2021

Both early- and late-stage startup valuations are currently elevated. For context, seed-stage pre-money valuations are up 24% from H1 2020 to H1 2021. Early-stage valuations are up 70%, and late-stage valuations are up 103% (source Pitchbook ). The answer is likely a mix of both. Probably, yes as well.

Valuation 319

Valuation Pre-Money Valuation Distribution Early Stage 319

VC Cafe

JANUARY 20, 2014

Across all investment stages, median pre-money valuations last year rose dramatically. The bull market will celebrate its 5 th anniversary in March (NASDAQ grew 38.3% last year, more than any other major index), and the IPO market is booming. Now the cost of entry to the Party is rising. Seed-stage deals now require $5.1

Venture Capital 155

Venture Capital Israel Pre-Money Valuation IPO 155

View from Seed

SEPTEMBER 14, 2021

Both early- and late-stage startup valuations are currently elevated. For context, seed-stage pre-money valuations are up 24% from H1 2020 to H1 2021. Early-stage valuations are up 70%, and late-stage valuations are up 103% (source Pitchbook ). The answer is likely a mix of both. Probably, yes as well.

Valuation 295

Valuation Pre-Money Valuation Distribution Early Stage 295

The Startup Lawyer

FEBRUARY 4, 2011

The following are some issues to consider and actions to take before accepting an incubator’s offer: (1) Calculate Valuation and Determine Value. Pre-money valuations startups receive from incubators are typically low…really low. How is the technology? (5) 2) Scrutinize the Investment Structure.

Incubator 105

Incubator Pre-Money Valuation Option Pool Advisory Board 105

K9 Ventures

MARCH 23, 2011

That’s an invaluable exercise, which is probably even *more* important in the early stages of the company, while you’re still trying to figure out the technology, the product, the market, the pricing, the team. The correct answer is that at a $1M pre-money valuation, the discounted share price for the note holder would be $0.80.

Pre-Money Valuation 132

Pre-Money Valuation Valuation Equity Liquidation Preference 132

Feld Thoughts

JULY 29, 2011

They have seen first-hand the impact technology can have in the medical field through exposure to a number of Denver Health IT initiatives. Jane felt comfortable with receiving 10% for $50k, but no less, so they agreed on a $450k pre money valuation of their startup.

Equity 137

Equity Finance Denver Pre-Money Valuation 137

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

Berkonomics

JANUARY 7, 2021

How many of them, particularly in technology, were able to start a company, supply all the funding, and share no management tasks or equity with others, and still grow the company to any significant size, worthy of a multi-million-dollar opportunity to cash out at exit? It starts with sharing the opportunity and upside.

Liquidity Event 96

Liquidity Event Pre-Money Valuation Cofounder Initial Public Offering 96

Startup Lessons Learned

JUNE 19, 2019

In 2005, he retired to focus on giving back, beginning by teaching technology entrepreneurship courses at Stanford, becoming a trustee at the University of Pennsylvania (which he attended undergrad), and funding cancer research with his wife. That's not how great companies are built in technology. That leads to very mundane outcomes.

Silicon Valley 159

Silicon Valley Lean Venture Capital Pre-Money Valuation 159

View from Seed

SEPTEMBER 14, 2021

Both early- and late-stage startup valuations are currently elevated. For context, seed-stage pre-money valuations are up 24% from H1 2020 to H1 2021. Early-stage valuations are up 70%, and late-stage valuations are up 103% (source Pitchbook ). The answer is likely a mix of both. Probably, yes as well.

Valuation 156

Valuation Pre-Money Valuation Distribution Early Stage 156

The Startup Magazine

SEPTEMBER 12, 2019

Before opening yourselves up to venture capital, you should have enough customers to demonstrate real value and present specific numbers to support your pre-money valuation. . It certainly was for us. Sashi Narahari is the founder, president and CEO of HighRadius.

Early Stage 98

Early Stage Venture Capital Bootstrapping Pre-Money Valuation 98

Altgate

MAY 24, 2012

Our CompStudy data, which allows us to compare Facebook’s equity dilution against that of some 2,500 technology startups, shows how successful the team has been. million, with a valuation of $10 million. Third round: Raise $7 million, with a valuation of $15 million. million, with a valuation of about $100 million.

Pre-Money Valuation 43

Pre-Money Valuation Cofounder Dilution Valuation 43

This is going to be BIG.

SEPTEMBER 7, 2012

If you're investing at pre-money valuations in the low to mid single digits, then how much worse can the next round even get? If I invest at a 4 pre and the next round investor says, "I'll do this, but only at a 2 pre," then we're already effed and something went wrong. Down from what?

Later Stage 99

Later Stage Down Round Pre-Money Valuation Early Stage 99

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. From a technology perspective our journey is nowhere near over. Just 3 years ago there was talk of institutional investors “not being able to write small enough checks.”

Technical Review 398

Technical Review Venture Capital Valuation Pre-Money Valuation 398

Andrew Payne

MARCH 8, 2016

From a statistical analysis of over 6,000 startups, the paper (and article) argue (roughly) that founders with board control, the CEO position, or both, can “harm the firm’s prospects, reducing pre-money valuation by up to 22%.” in technology) . ” Really?

Pre-Money Valuation 40

Pre-Money Valuation Founder Valuation Startup 40

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. really understand it. No, really.

Silicon Valley 301

Silicon Valley Pre-Money Valuation Technical Review Software Review 301