The 411 On Startups ™

Follow @theStartup411

  • ANGELS 411
    • Angel Investing Statistics
    • Angel Primers
    • Common Deal Mistakes
    • Expected Returns
    • Founder Salaries
    • How Groups Work
    • Net Worth Allocation
    • Tax Incentives
  • ENTREPRENEURS 411
    • Common Mistakes
    • Dilution Through Exit
    • Employee Option Grants
    • Executive Summaries
    • Exit Strategy
    • Finding Angels
    • Founders Syndrome
    • Fundraising
    • General Primers
    • Gust / Angelsoft
    • Hiring The Team
    • Investor Presentations
    • Milestones/$$ to Raise
    • Money Finders
    • Pitching
    • Stealthy or Not
    • Technology Transfer
    • Type of Investors
    • Types of Entrepreneur
  • FUNDING SOURCES
    • Angel Groups
    • Angels
    • Bank Loans
    • Family and Friends
    • Funding Sources Overview
    • Grants
    • Revenue Based Financing
    • SBA Loans
    • Strategic Investors
    • Super Angels
    • Venture Capital
    • Venture Leasing
    • Web/Micro Loans & Crowdfunding
  • LEGAL/CORPORATE STUFF
    • Advisory Board
    • Board Of Directors
    • Founder Agreements
    • Get the Right Attorney
    • Legal Stuff Primers
    • License Agreements
    • LLC or C or S Corp?
    • Non-Disclosure Agreements
    • Patents and IP
    • Restricted Stock
    • Selling Stock — SEC Rules
    • Stock Options
    • Stock Terminology
  • NON-PROFIT CATALYSTS
    • Creating A Startup Culture
    • Economic Development
    • Incubators / Accelerators
    • Organizations
    • Venture Forums
  • OTHER
    • GOOGLE GENERIC SEARCHES
    • LIST OF LISTS
    • TOPICAL
  • PLANNING
    • Business Models
    • Business Planning Software
    • Business Plans
    • Financial Plans
    • Financing Plans
    • Marketing Plans
  • STARTUP MEDIA
    • Blogs
    • Books
    • Podcasts
    • Presentations
    • Videos
  • TAKING THE MONEY
    • Capitalization Tables
    • Convertible Notes
    • Due Diligence
    • Funding Documents
    • Preferred Stock
    • Private Placement Memorandum PPM
    • Term Sheets
    • Valuation
  • Uncategorized
  1.  
  2. TAKING THE MONEY
  3. Valuation
1 2 Next »

Setting The Right Valuation For A Competitive Series A Round | TechCrunch

Aug

2

2015

Founders are often puzzled by how VCs derive valuations for competitive Series A rounds. A competitive Series A round is an equity round where a company generally raises greater than $5 million led by a top-quartile venture capital firm. During these Series A rounds, it is not uncommon for founders to receive multiple term sheets from lead investors at different ...
read more →

Fundraising · Valuation

series a

2014 Pre-Money Valuation of Seed Stage Angel Deals

May

18

2015

The median pre-money valuation of seed stage deals has increased since 2010, as the US economy has emerged from the recent recession.  The following table shows the pre-money valuation of seed stage deals from several sources over the past five years: Payne’s survey data was provided by 30 angel groups from all regions of the ...
read more →

Valuation

Investors Weigh In With Convertible Note Caveats for Start-Ups – Venture Capital Dispatch – WSJ

May

7

2013

Tech entrepreneurs take note: Convertible notes are not free money and, if not structured properly, can prevent you from raising additional financing. Investors speaking at the TechCrunch in San Francisco this week had this gem and a few other choice observations about early-stage financing for start-ups. “We’ve had companies come in for their Series A ...
read more →

Convertible Notes · Valuation

Ideal first round funding terms

May

28

2012

My last 2 posts were about things to avoid, so I thought it might be helpful to follow up with something more positive. Having been part of or observed about 50 early stage deals, I have come to believe there is a clearly dominant set of deal terms. Here they are: – Investors get either ...
read more →

Angel Primers · Founder Salaries · Term Sheets · Valuation

first round funding

Valuation and Option Pool — Understand the trade off

May

16

2012

One of the more contentious things in the negotiation between an entrepreneur and a VC over a financing, particularly an early stage financing, is the inclusion of an option pool in the pre-money valuation. As my friend Mark Pincus likes to say, “it’s just another way to lower the price”. I’ll accept that critique. And ...
read more →

Angel Primers · Stock Options · Valuation

option pool · post-money · pre-money

Current Pre-money Valuations of Pre-revenue Companies

May

16

2012

I just returned from the 2011 Angel Capital Association Summit in Boston, April 4-6, 2011.  It was attended by over 500 angels and associates, including about 60 international angel leaders.  It was an excellent meeting – the best yet of the half-dozen or so US ACA angel Summits to date. On Wednesday afternoon, I was ...
read more →

Valuation

pre-money

Option Pool, Post-Money and True Pre-Money. Trade Pool for Valuation.

May

2

2012

One of the common areas of misunderstanding, and therefore conflict, in financing negotiations has to do with the relationship between the pre-money valuation and the option pool. Investors want the company to have an adequate option pool for future hiring and it is customary to include the pool in the pre-money valuation. Some entrepreneurs see ...
read more →

Stock Options · Valuation

option pool · post-money · pre-money

Venture Hacks Series A Cap Table, with Note Conversion and Option Pool

Apr

17

2012

This is a Youtube video explanation of a cap (capitalization) table example that is available online. It may take a while get your head around the terminology and concepts involving the option pool and note conversion, and their impact on valuation. It is worth taking time to understand this if you want to see how ...
read more →

Convertible Notes · Fundraising · Preferred Stock · Stock Options · Valuation

option pool · post-money · pre-money

Revenue Based Financing — often non-dilutive to founders, no valuation impact

Apr

16

2012

A revenue-based finance (RBF) investment provides capital to a business by “selling” an ongoing percentage of a company’s future revenues to the investor.  For simplicity, you can think of it as a revenue share type of arrangement. Investor gives capital to company in exchange for a small percentage of gross revenues. RBF lives as a ...
read more →

Revenue Based Financing · Valuation

founder dilution

High Tech Startup Valuation Estimator

Oct

19

2008

(Note: the best way to use this valuation estimator is to answer the questions, see the valuation, and then change an answer or two to see the effect.)Wondering what your pre-money valuation will be if a VC ever puts a term sheet on the table? Valuing a startup is intrinsically different from valuing established companies. ...
read more →

Valuation

valuation

1 2 Next »

Popular Posts

  • Milestones – Biotech Startup Milestones – Venture Capital Deliverables
  • Spreadsheet for creating a startup financial plan
  • BizPlanIt Virtual Business Plan
  • Writing an Effective Business Plan — Deloitte & Touche LLP.
  • Discount or cap? A spreadsheet that shows what happens when a note converts.

© 2023 The 411 On Startups ™ — All Rights Reserved.