Both Sides of the Table

JUNE 30, 2016

How much you raise determines valuation I know it sounds crazy but at the earliest stages of a company your valuation often is determined by how much money you raise. A $15–20 million valuation sounds better than an $8 million valuation, doesn’t it? But people never do. Justin is right. But it’s actually not that silly.

Pre-Money Valuation 292

Pre-Money Valuation Valuation Early Stage Startup 292

Startup Professionals Musings

OCTOBER 14, 2022

In his classic book, “ The Leadership Capital Index ,” Dave Ulrich, a best-selling author, business consultant, and business school professor, provides some real insights and metrics on what makes up the elements of goodwill in the minds of top valuation experts. I have paraphrased his key points here as follows: Leader personal impact.

Technical Review 323

Technical Review Due Diligence Valuation Leadership 323

Startup Professionals Musings

AUGUST 9, 2020

Investors may not be called co-founders, but they always get equity, commensurate with their share of the total costs anticipated, or share of the current valuation. Amount of venture funding provided. The challenge is for real co-founders to keep their equity percentage above 50%, or they effectively lose control of operational decisions.

Cofounder 435

Cofounder Technical Cofounder Equity Intellectual Property 435

Both Sides of the Table

JULY 23, 2014

We are in a bubble (with so many private $1bn+ valuations). pre-money valuation you certainly would want to exercise your right to continue investing if you had prorata rights. 15 years ago we were at the peak of Internet hype with the launch of many over-capitalized businesses with a market size & opportunity was limited.

Technical Review 398

Technical Review Venture Capital Valuation Pre-Money Valuation 398

YoungUpstarts

AUGUST 18, 2020

While this “balance sheet” valuation of your company overlooks important value factors such as revenue and earnings potential, it is a good place to start in determining the actual material value of physical property. If your company is worth only $2.5 Skip the Guesswork – Use the Tools.

Balance Sheet 195

Balance Sheet Valuation Software Review .Net 195

Both Sides of the Table

JUNE 28, 2018

How could Bird really be worth the reported $2 billion valuation that I read about in this press? While I promised not to comment on the exact valuation you can assume that it is very large and perhaps the fastest rise from zero to what some have called a “unicorn” valuation. Forget the valuation?—?I

San Francisco 256

San Francisco Valuation Los Angeles Technical Review 256

VC Cafe

FEBRUARY 27, 2024

Everyone moved to earlier stage – part of the decline in late stage investing is the ‘baggage’ of companies that previously raised money at inflated valuations that they would struggle to justify in today’s market. That’s yet another reason for micro funds to move earlier in the fundraising timeline.

Valuation 186

Valuation Software Review Generative AI Technical Review 186

Startup Professionals Musings

DECEMBER 20, 2019

There is additional encouraging news for aspiring entrepreneurs on many fronts, just in case you are thinking about joining the existing ranks: Valuations of successful startups have hit an all-time high. They also suggest that a business valuation discipline has returned to the Valley.

North America 320

North America Incubator Initial Public Offering Valuation 320

Steve Blank

JUNE 27, 2017

Uber – current valuation >$70 billion – knew the day they started that their ridesharing service violated the law in most jurisdictions. Airbnb – current valuation $31 billion – allows people to rent out their homes, rooms or apartments to visitors. Here are some of the most visible examples.

Startup 306

Startup New York City Valuation Distribution 306

Startup Professionals Musings

NOVEMBER 28, 2020

Who would not want to join the unicorns (recent startups with a current valuation of over $1 billion)? But for founders who do their homework, the cost of entry is lower and the opportunity is higher than ever.

Intellectual Property 404

Intellectual Property Startup Angel Groups Social Media 404

VC Cafe

APRIL 26, 2021

billion valuation just one year from funding, or Israeli founded Deel, that recently raised $156M series C at a $1.25 billion valuation and is one of the fastest growing Israeli founded startups to reach unicorn status. Take Wiz for example, that grew to $1.7 Source: Eze Vidra/ VC Cafe ( Download ).

Israel 215

Israel Technical Review Artificial Inteligence Startup 215

Both Sides of the Table

MAY 28, 2018

Every VC knows that the amount you raise is often a proxy for your valuation. So when you say $8–10m is your goal and you aren’t at all thinking about your valuation know that a VC hears “$24–40 million pre-money valuation expectations.” In the next post I’ll give some advice on how to talk about valuation when a VC asks.

Burn Rate 247

Burn Rate Valuation Pre-Money Valuation Dilution 247

Startup Professionals Musings

AUGUST 19, 2020

That should equate to an adequate valuation for a $2 million follow-on Series-A round, without giving away all the equity. Overall, managing cash flow and burn rate is more critical to your business success than having the right idea and the right product.

Burn Rate 310

Burn Rate Hockey Stick Salary Angel Investor 310

Steve Blank

SEPTEMBER 5, 2018

What matters to investors now is to drive startup valuations into unicorn territory (valued at $1 billion or more) via rapid growth – usually users, revenue, engagements but almost never profits. And if the company does go public, the valuations are at least 10x of the last bubble.

Lean 335

Lean Burn Rate Startup IPO 335

YoungUpstarts

NOVEMBER 2, 2020

REASON 6: Digitally Driven Companies Have Higher Valuations. Lastly, and perhaps most importantly, digitally driven companies have consistently higher valuations. According to MIT, more digitally “mature” companies achieve market valuations 12 percent higher than competitors.

Valuation 264

Valuation Technical Review Revenue Operations 264

Steve Blank

NOVEMBER 2, 2021

We discussed whether 1) that was true or just anecdotal 2) if true, was it the same in other research universities, 3) why it happened (software startups are getting funded at obscene valuations)?

Technical Review 407

Technical Review Taiwan Technology Silicon Valley 407

Startup Professionals Musings

JUNE 11, 2022

Some nonprofit entrepreneurs think they can skip the whole plan, rather than just the sections on valuation, equity offered, and exit strategy. You still start the process with a business plan, but then you look for a philanthropist rather than an investor.

Angel Investor 327

Angel Investor Equity Technical Review Exit Strategy 327

YoungUpstarts

NOVEMBER 19, 2020

EBITDA is the most important profitability metric to consider as many valuations are based on a multiple of this metric. That being said, it makes sense that when business is booming, your valuation will be higher. A diversified customer base can reduce cash flow risks and greatly increase your company’s value.

Exit Strategy 246

Exit Strategy Intellectual Property Valuation Metrics 246

Startup Professionals Musings

MARCH 10, 2021

Often, the number one question that entrepreneurs fail to address is: “How much money do you need, and what valuation do you place on your company?” Additionally, you need to be able to communicate the essence that story and value to investors in a couple of sentences – your elevator pitch. Lack of clear objectives/goals.

Software Review 307

Software Review Due Diligence Elevator Pitch Early Stage 307

Both Sides of the Table

MAY 30, 2018

I thought I’d write a post about how to talk about valuation at a startup and give you some sense of what might be on the mind of the person considering funding you. It’s not uncommon for a VC to ask you how much capital you’ve raised and what the post-money valuation was on your last round. is to start with just the data.

Valuation 324

Valuation Post-Money Valuation Pre-Money Valuation Cofounder 324

Steve Blank

JULY 11, 2017

Before the rapid rise of Unicorns, (startups with a valuation over a billion dollars), when boards were still in control, they “encouraged” the hiring of “adult supervision” of the founders after they found product/market fit. Adult Supervision.

Part-Time VPE 329

Part-Time VPE Liquidity Event Stock Engineer 329

Startup Professionals Musings

MAY 14, 2023

That should equate to an adequate valuation for a $2 million follow-on Series-A round, without giving away all the equity. Overall, managing cash flow and burn rate is more critical to your business success than having the right idea and the right product.

Burn Rate 258

Burn Rate Hockey Stick Management Salary 258

Startup Professionals Musings

DECEMBER 30, 2022

Every business owner and entrepreneur I meet in my consulting rounds dreams of finding that “ disruptive ” innovation that will supercharge their business and move it into the ranks of business unicorns (billion-dollar valuations), such as SpaceX and Apple.

Technical Review 252

Technical Review Silicon Valley Software Review Metrics 252

Startup Professionals Musings

OCTOBER 24, 2021

Later, good intellectual property can be worth millions when your company valuation is set for investment purposes, or when the company is acquired or sold. In cost, all of these elements of intellectual property may be acquired for a few hundred dollars (or a few thousand with an attorney), if you act early and quickly. Marty Zwilling.

Intellectual Property 363

Intellectual Property Portfolio Valuation Non-disclosure Agreement 363

Startup Professionals Musings

MAY 1, 2023

Investors may not be called cofounders, but they always get equity, commensurate with their share of the total costs anticipated, or share of the current valuation. Amount of venture funding provided. The challenge is for real cofounders to keep their equity percentage above 50%, or they effectively lose control of operational decisions.

Technical Cofounder 247

Technical Cofounder Equity Distribution Cofounder 247

View from Seed

NOVEMBER 18, 2020

Uber is an $85B+ market cap company today but is essentially flat to its IPO price and late private round valuations. If that proves to be right, Airbnb may ultimately be a company where the majority of the value creation has occurred in the private markets over the last 13 years.

North America 401

North America IPO Prospectus Europe 401

The Startup Magazine

OCTOBER 18, 2024

Comparing the mCap/TVL ratio across protocols provides insights into their relative valuations. Lower ratios generally imply healthier valuations and may suggest a more stable investment opportunity. The P/S ratio gives insight into whether a protocol’s valuation aligns with its revenue generation.

Metrics 155

Metrics Valuation API Distribution 155

Both Sides of the Table

JULY 17, 2018

Be sure you can grow into your valuation by next fund-raising or your last raise could become existential or extremely dilutive  —  @msuster 7/ If you know an employee is a negative energy in the office don't delay parting ways. But if you raise at too high a price you make it harder to raise next round.

Founder 242

Founder Dilution Software Review Later Stage 242

VC Cafe

SEPTEMBER 26, 2022

ValuatIon should be a function of value, not ego. Kawasaki’s Law of Pre-Money Valuation: for every full-time engineer, add $500,000; for every full-time M.B.A., But valuations, especially those in the private market, are not necessarily a predictor of growth/ success. Our goals, their goals. subtract $250,000. 9M Seed: $20M ?

Founder 187

Founder Startup Valuation Pre-Money Valuation 187

Startup Professionals Musings

SEPTEMBER 10, 2018

Investors may not be called co-founders, but they always get equity, commensurate with their share of the total costs anticipated, or share of the current valuation. Amount of venture funding provided. The challenge is for real co-founders to keep their equity percentage above 50%, or they effectively lose control of operational decisions.

Equity 238

Equity Cofounder Technical Cofounder Intellectual Property 238

Startup Professionals Musings

SEPTEMBER 29, 2018

That should equate to an adequate valuation for a $2 million follow-on Series-A round, without giving away all the equity. Overall, managing cash flow and burn rate is more critical to your business success than having the right idea and the right product.

Burn Rate 223

Burn Rate Hockey Stick Startup Salary 223

Steve Blank

OCTOBER 24, 2017

Visionary CEOs have always been the face of their company, but today with social media, it happens faster with a much larger audience; boards now must consider what would happen to the valuation of the company without the founder. Financial and legal control of startups has given way to polite moral suasion as founders now control unicorns.

Founder 281

Founder Technical Review CTO Hire IPO 281

VC Cafe

JUNE 10, 2022

According to new research by Pitchbook , the trickle down effect has already started in seed and series A startups with round sizes and valuations shrinking in size compared to 2021. But recently those round sizes and valuations have tumbled to about $10 million and $50 million, respectively, he said. Lemkin #????????????

Valuation 152

Valuation Marketing Israel Venture Capital 152

VC Cafe

SEPTEMBER 30, 2024

billion in earn out targets) and Wiz, Israel’s fast growing cybersecurity startup is talks on raising funding at $20 billion valuation, after turning down a Google acquisition offer for $23 billion. With attractive valuations and immense growth potential, the Israeli tech ecosystem remains resilient—no matter the circumstances.

Israel 184

Israel Technical Review Startup Generative AI 184

YoungUpstarts

FEBRUARY 12, 2021

Get creative by maximizing your home's current strengths while envisioning new ways to improve or add features to improve home valuation. The post Home Projects To Increase Your Home Valuation appeared first on Young Upstarts.

Valuation 244

Valuation 244

Both Sides of the Table

FEBRUARY 27, 2019

The law firm has done its job of preparing the stock option requests, board meeting minutes, 409a valuations. If you start with admin (409a valuations, small stock option allocations, board minutes) and you then chew up 20 minutes with this?—?it’s The meeting starts. The agenda should be purposeful. it’s your own fault.

Stock Options 226

Stock Options Metrics Stock Valuation 226

Startup Professionals Musings

SEPTEMBER 16, 2023

Who would not want to join the unicorns (recent startups with a current valuation of over $1 billion)? But for founders who do their homework, the cost of entry is lower and the opportunity is higher than ever.

Intellectual Property 261

Intellectual Property Entrepreneur Angel Groups Social Media 261