Comments on: The Return of the Large Pre-Launch Consumer Web Financing http://www.charleshudson.net/the-return-of-the-large-pre-launch-consumer-web-financing?utm_source=rss&utm_medium=rss&utm_campaign=the-return-of-the-large-pre-launch-consumer-web-financing This is my personal website for posting my views on the world of technology and gadgets. Sat, 11 Feb 2012 02:25:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: charles http://www.charleshudson.net/the-return-of-the-large-pre-launch-consumer-web-financing/comment-page-1#comment-11499 charles Thu, 03 May 2007 22:34:30 +0000 http://blog.charleshudson.net/?p=310#comment-11499 Shaun, My sense is that these deals have to get done at valuations where the VCs walk away with 40-60% of the company after the round. Anything more or less than that probably doesn't make sense given the numbers. Shaun,
My sense is that these deals have to get done at valuations where the VCs walk away with 40-60% of the company after the round. Anything more or less than that probably doesn’t make sense given the numbers.

]]> By: charles http://www.charleshudson.net/the-return-of-the-large-pre-launch-consumer-web-financing/comment-page-1#comment-31034 charles Thu, 03 May 2007 22:34:30 +0000 http://blog.charleshudson.net/?p=310#comment-31034 Shaun, My sense is that these deals have to get done at valuations where the VCs walk away with 40-60% of the company after the round. Anything more or less than that probably doesn't make sense given the numbers. Shaun, My sense is that these deals have to get done at valuations where the VCs walk away with 40-60% of the company after the round. Anything more or less than that probably doesn’t make sense given the numbers.

]]> By: Shaun http://www.charleshudson.net/the-return-of-the-large-pre-launch-consumer-web-financing/comment-page-1#comment-11498 Shaun Thu, 03 May 2007 22:22:16 +0000 http://blog.charleshudson.net/?p=310#comment-11498 While I do agree that giving a VC too much ownership greatly reduces the economic motivation for teams to launch and grow the company, I also can't see how a VC can justify the risk of seed stage investment in, what is essentially, an "idea" for 20-40% ownership. Especially when business plan ("idea") was likely shopped around - making the "secret sauce" not so secret. While I do agree that giving a VC too much ownership greatly reduces the economic motivation for teams to launch and grow the company, I also can’t see how a VC can justify the risk of seed stage investment in, what is essentially, an “idea” for 20-40% ownership. Especially when business plan (“idea”) was likely shopped around – making the “secret sauce” not so secret.

]]> By: charles http://www.charleshudson.net/the-return-of-the-large-pre-launch-consumer-web-financing/comment-page-1#comment-11497 charles Thu, 03 May 2007 22:11:49 +0000 http://blog.charleshudson.net/?p=310#comment-11497 Shaun, Thanks for the comment. My sense is that these deals have to get done at high valuations -- otherwise, the teams wouldn't have the economic motivation to launch and grow the company. Shaun,

Thanks for the comment. My sense is that these deals have to get done at high valuations — otherwise, the teams wouldn’t have the economic motivation to launch and grow the company.

]]> By: charles http://www.charleshudson.net/the-return-of-the-large-pre-launch-consumer-web-financing/comment-page-1#comment-31033 charles Thu, 03 May 2007 22:11:49 +0000 http://blog.charleshudson.net/?p=310#comment-31033 Shaun, Thanks for the comment. My sense is that these deals have to get done at high valuations -- otherwise, the teams wouldn't have the economic motivation to launch and grow the company. Shaun, Thanks for the comment. My sense is that these deals have to get done at high valuations — otherwise, the teams wouldn’t have the economic motivation to launch and grow the company.

]]> By: Shaun http://www.charleshudson.net/the-return-of-the-large-pre-launch-consumer-web-financing/comment-page-1#comment-11490 Shaun Thu, 03 May 2007 21:05:46 +0000 http://blog.charleshudson.net/?p=310#comment-11490 Another interesting topic would be how these pre-launch "stealth" companies are able to establish a high enough pre-investment valuation (for round A) that they don't end up giving up 75%+ of their company to the VCs. Another interesting topic would be how these pre-launch “stealth” companies are able to establish a high enough pre-investment valuation (for round A) that they don’t end up giving up 75%+ of their company to the VCs.

]]> By: jeremy liew http://www.charleshudson.net/the-return-of-the-large-pre-launch-consumer-web-financing/comment-page-1#comment-11462 jeremy liew Thu, 03 May 2007 06:09:22 +0000 http://blog.charleshudson.net/?p=310#comment-11462 I think what you're talking about is essentially how long a company stays in stealth mode, and if this is pre or post funding. I tend to agree with you that there are very few occasions when it makes sense to be in stealth for a long time. I blogged about this on the Lightspeed Venture Partners blog a few months ago - if you're interested click on my name in this comment I think what you’re talking about is essentially how long a company stays in stealth mode, and if this is pre or post funding. I tend to agree with you that there are very few occasions when it makes sense to be in stealth for a long time. I blogged about this on the Lightspeed Venture Partners blog a few months ago – if you’re interested click on my name in this comment

]]> By: jeremy liew http://www.charleshudson.net/the-return-of-the-large-pre-launch-consumer-web-financing/comment-page-1#comment-31032 jeremy liew Thu, 03 May 2007 06:09:22 +0000 http://blog.charleshudson.net/?p=310#comment-31032 I think what you're talking about is essentially how long a company stays in stealth mode, and if this is pre or post funding. I tend to agree with you that there are very few occasions when it makes sense to be in stealth for a long time. I blogged about this on the Lightspeed Venture Partners blog a few months ago - if you're interested click on my name in this comment I think what you’re talking about is essentially how long a company stays in stealth mode, and if this is pre or post funding. I tend to agree with you that there are very few occasions when it makes sense to be in stealth for a long time. I blogged about this on the Lightspeed Venture Partners blog a few months ago – if you’re interested click on my name in this comment

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