Remove 2009 Remove Pricing Remove Seed Funding Remove Writing
article thumbnail

What Does the Post Crash VC Market Look Like?

Both Sides of the Table

<== Our conclusion was that this isn’t a temporary blip that will swiftly trend-back up in a V-shaped recovery of valuations but rather represented a new normal on how the market will price these companies somewhat permanently. Across more than 10 years we have kept the size of our Seed investments between $2–3.5

article thumbnail

The Changing Structure of the VC Industry

Both Sides of the Table

Just 3 years ago there was talk of institutional investors “not being able to write small enough checks.” ” The new narrative is “will my seed funds be able to fund the prorata of their winners?” ” Stated simply – if you seed funded Uber at $4.5m Why is this?

Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

What is it Like to Negotiate a VC Round?

Both Sides of the Table

” Today I want to talk about how a VC thinks about equity pricing on your round and particularly if you’re coming off of a convertible note. This was until about 2009 because most the investments in companies came from one, maybe two, sources. So how DOES a VC think about financings at early stages? It’s very simple.

article thumbnail

Angel Funding Advice

Both Sides of the Table

I recently wrote a post on angel financing covering the topic of convertible notes but I realized I was thinking about the issue more from investor perspective and a very narrow topic of how to price the round. The key to getting money is that the people writing the check trust you. I am always an advocate of setting a price.

Angel 291
article thumbnail

What is the Right Burn Rate at a Startup Company?

Both Sides of the Table

In a world where the economy only heads in one direction (read: 2009-2014) most investors & entrepreneurs forget to pay attention to gross burn. If you have raised a limited amount of money from angels, accelerators or seed funds be very careful about having a high burn rate.

Startup 383
article thumbnail

VC Confessions: We Passed On Twilio’s Seed Round

InfoChachkie

For a high-volume seed fund that adds many portfolio companies every year (such as our friends at 500 Startups who invest in over 100 distinct companies annually), the cost of a bad affirmative decision (a false positive) is quite low, since it accounts for a relatively small portion of their total fund.

article thumbnail

What Most People Don’t Understand About How Startup Companies are Valued

Both Sides of the Table

There is much discussion online and also in small, private groups, about why the price of technology companies – public and private – are falling. It pains me to see the typical (and predictable) responses on Twitter, “VCs want prices to drop!” ” “Sure, prices are dropping.

Startup 150