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Pricing A Follow-On Venture Investment - AVC

avc.com · 136 words · saved by 1 readers

Today on MBA Mondays, I am going to walk you through some math that our team does when looking at a venture investment in a company that is starting to scale its business. Let's assume we have a portfolio company. I will call it fit.sy. It is a marketplace for fitness experiences. We invested in […]

Great post Fred. The times I learned the most on the job at USV was doing analyses like this, and I love to see you sharing this with the world.One thing to add:The post-money valuation on the *prior* round is perhaps the most important data point when it comes to doing an internal follow-on financing. It shouldn’t be… in an ideal world a company would always raise at a valuation that reflects its current value, but many times that’s not the case. Your analysis gets to a fair price for fit.sy right now. But if the Post on the last round was 200% of that new price, I think thi

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