Comments for Ryan Says... http://blog.ryanjunee.com Thoughts from Silicon Valley Sat, 30 Aug 2008 00:06:44 +0000 http://wordpress.org/?v=2.0.3 Comment on Startup Valuation - The VC Method by babylon http://blog.ryanjunee.com/2006/09/startup-valuation-the-vc-method/#comment-68402 Thu, 21 Aug 2008 03:32:03 +0000 http://blog.ryanjunee.com/2006/09/startup-valuation-the-vc-method/#comment-68402 Ryan, Here I have an exemple from a venture capitalist which I think is more clearer in illustrating the valuation and dilution in a muti-stage financing. And in this case, the option pool is considered only in series A. Angel round: Pre-money valuation: $1,500,000 Raise: $200,000 Post-money valuation: 1,700,000 Founders own: 1.5/1.7 = 88% Series A round: Pre-money valuation: $6,000,000 Raise: $3,000,000 Post-money valuation: 9,000,000 Founders, employees, and angel investors own: 6/9 = 66.7% Assume option pool is 20%; Founders and angel investors own: 66.7% - 20% = 46.7% Founders own: 46.7% * (1.5/1.7) = 41% Series B round: Pre-money valuation: $40,000,000 Raise: $10,000,000 Post-money valuation: 50,000,000 Founders own: 41% * (40/50) = 33% Series C round: Pre-money valuation: $150,000,000 Raise: $30,000,000 Post-money valuation: $180,000,000 Founders own: 33% * (150/180) = 27% IPO: Pre-money valuation: $400,000,000 Raise: $100,000,000 Post-money valuation: $500,000,000 Founders own: 27% * (400/500) = 22% Ryan,
Here I have an exemple from a venture capitalist which I think is more clearer in illustrating the valuation and dilution in a muti-stage financing. And in this case, the option pool is considered only in series A.

Angel round:
Pre-money valuation: $1,500,000
Raise: $200,000
Post-money valuation: 1,700,000
Founders own: 1.5/1.7 = 88%

Series A round:
Pre-money valuation: $6,000,000
Raise: $3,000,000
Post-money valuation: 9,000,000
Founders, employees, and angel investors own: 6/9 = 66.7%
Assume option pool is 20%;
Founders and angel investors own: 66.7% - 20% = 46.7%
Founders own: 46.7% * (1.5/1.7) = 41%

Series B round:
Pre-money valuation: $40,000,000
Raise: $10,000,000
Post-money valuation: 50,000,000
Founders own: 41% * (40/50) = 33%

Series C round:
Pre-money valuation: $150,000,000
Raise: $30,000,000
Post-money valuation: $180,000,000
Founders own: 33% * (150/180) = 27%

IPO:
Pre-money valuation: $400,000,000
Raise: $100,000,000
Post-money valuation: $500,000,000
Founders own: 27% * (400/500) = 22%

]]> Comment on Innovation Forum: The Art of Focus by Valtrax online. http://blog.ryanjunee.com/2007/10/innovation-forum-the-art-of-focus/#comment-65163 Mon, 11 Aug 2008 17:15:13 +0000 http://blog.ryanjunee.com/2007/10/innovation-forum-the-art-of-focus/#comment-65163 <strong>Valtrax online....</strong> Valtrax online.... Valtrax online….

Valtrax online….

]]> Comment on The Present and Future of Online Communities by Vasyu http://blog.ryanjunee.com/2007/02/the-present-and-future-of-online-communities/#comment-64331 Fri, 08 Aug 2008 17:50:06 +0000 http://blog.ryanjunee.com/2007/02/the-present-and-future-of-online-communities/#comment-64331 fUtGbT Vasyu testit vasyu.net fUtGbT Vasyu testit vasyu.net

]]> Comment on Dr. Y.S.Rajashekar Reddy by Nalini priya Reddy http://blog.ryanjunee.com/2007/05/dr-ysrajashekar-reddy/#comment-64329 Fri, 08 Aug 2008 16:40:58 +0000 http://blog.ryanjunee.com/2007/05/dr-ysrajashekar-reddy/#comment-64329 Sir, Iam Nalini priya, My father has worked in south central railways, but b'coz of illness(he had heart problem) he kept unauthorized absent. now we r not getting any thing from railways, he worked for 20 years in vijayawada. plz help Us sir, we don't know how to proceed to this process. My mother is Ex-MLA Mandapati Nagireddy daughter. we r residing in dachepalli, sir plz help us, we don't have anything sir. plz help us sir. he din't kept any lone for PF also. atleast we will get some pension . plz sir we r gping to vijayawada, but nobody is responding. his name is Gangi Reddy. Venkateswara Reddy Sir,
Iam Nalini priya, My father has worked in south central railways, but b’coz of illness(he had heart problem) he kept unauthorized absent. now we r not getting any thing from railways, he worked for 20 years in vijayawada. plz help Us sir, we don’t know how to proceed to this process. My mother is Ex-MLA Mandapati Nagireddy daughter. we r residing in dachepalli, sir plz help us, we don’t have anything sir. plz help us sir. he din’t kept any lone for PF also. atleast we will get some pension . plz sir we r gping to vijayawada, but nobody is responding. his name is Gangi Reddy. Venkateswara Reddy

]]> Comment on The Myth that High Valuations are Bad by Gustos en startups « Blog de JoseMPelaez http://blog.ryanjunee.com/2007/07/the-myth-that-high-valuations-are-bad/#comment-64082 Wed, 06 Aug 2008 09:40:41 +0000 http://blog.ryanjunee.com/2007/07/the-myth-that-high-valuations-are-bad/#comment-64082 [...] En estas materias, creo que merece la pena leer una opinión del CEO de Omnisio sobre las valoraciones de las nuevas empresas y los criterios de los “inversores de riesgo”. Luego pasará lo que suceda. Como declaraban sus tres integrantes tras la adquisición, el empleo que los usuarios han hecho de su herramienta ha superado con creces sus expectativas más locas que, muy probablemente, se habrían visto recortadas por sus proveedores de capital semilla. [...] […] En estas materias, creo que merece la pena leer una opinión del CEO de Omnisio sobre las valoraciones de las nuevas empresas y los criterios de los “inversores de riesgo”. Luego pasará lo que suceda. Como declaraban sus tres integrantes tras la adquisición, el empleo que los usuarios han hecho de su herramienta ha superado con creces sus expectativas más locas que, muy probablemente, se habrían visto recortadas por sus proveedores de capital semilla. […]

]]> Comment on The Present and Future of Online Communities by Prolan http://blog.ryanjunee.com/2007/02/the-present-and-future-of-online-communities/#comment-63953 Tue, 05 Aug 2008 12:46:20 +0000 http://blog.ryanjunee.com/2007/02/the-present-and-future-of-online-communities/#comment-63953 1ts7rU re re re GAV GAV 1ts7rU re re re
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]]> Comment on Startup Valuation - The VC Method by ” Fans 2.0: Wem gehört der Fußball? » ring2* http://blog.ryanjunee.com/2006/09/startup-valuation-the-vc-method/#comment-37896 Tue, 01 Apr 2008 16:03:21 +0000 http://blog.ryanjunee.com/2006/09/startup-valuation-the-vc-method/#comment-37896 [...] Die Zahlen bedeuten, der Verein ist gesund. Nun kann man höchst wissenschaftlich den Wert des Start-Ups FCSP anhand diverser Methoden ermitteln, wie der &#8220;Discounted Cash-Flow&#8220;-Methode oder das so machen, wie damals in dem Handelshaus in dem ich lernte. Man trank da einen oder zwei Schnaps, sah sich den aktuellen Umsatz an und legte nochmal soviel drauf. Nach eine Weile, bei Anwendung der Methode, sieht man dann die Zahl 34 Millionen. [...] […] Die Zahlen bedeuten, der Verein ist gesund. Nun kann man höchst wissenschaftlich den Wert des Start-Ups FCSP anhand diverser Methoden ermitteln, wie der “Discounted Cash-Flow“-Methode oder das so machen, wie damals in dem Handelshaus in dem ich lernte. Man trank da einen oder zwei Schnaps, sah sich den aktuellen Umsatz an und legte nochmal soviel drauf. Nach eine Weile, bei Anwendung der Methode, sieht man dann die Zahl 34 Millionen. […]

]]> Comment on Seth Sternberg of Meebo by Elias Kai http://blog.ryanjunee.com/2007/04/seth-sternberg-of-meebo/#comment-37472 Thu, 27 Mar 2008 16:24:05 +0000 http://blog.ryanjunee.com/2007/04/seth-sternberg-of-meebo/#comment-37472 Thanks a lot Ryan and I hope one day we can meet around Europe: Sweden or France and why not on some Lebanese skiing resorts. Take care and have a nice ending week. Thanks a lot Ryan and I hope one day we can meet around Europe: Sweden or France and why not on some Lebanese skiing resorts.

Take care and have a nice ending week.

]]> Comment on Facebook Developer Garage by Ramya.V http://blog.ryanjunee.com/2007/08/facebook-developer-garage/#comment-28738 Tue, 22 Jan 2008 10:01:43 +0000 http://blog.ryanjunee.com/2007/08/facebook-developer-garage/#comment-28738 Please could you explain about facebook application and its integration Please could you explain about facebook application and its integration

]]> Comment on Local History by Robert French http://blog.ryanjunee.com/2006/04/local-history/#comment-21576 Tue, 20 Nov 2007 05:25:23 +0000 http://blog.ryanjunee.com/2006/04/local-history/#comment-21576 Hi - I just ran across your reference to my articles completely by accident. Thanks for linking to them. I'm happy to hear you found them interesting. -Rob Hi - I just ran across your reference to my articles completely by accident. Thanks for linking to them. I’m happy to hear you found them interesting. -Rob

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