The Venture Alley - A blog about business and legal issues important to entrepreneurs, startups, venture capitalists and angel investors.

CONTRIBUTED BYTrent Dykestrent.dykes@dlapiper.com The Angel Resource Institute, Silicon Valley Bank and CB Insights recently released their angel group update 2012 year in review, the Halo Report. The Halo Report analyzes angel investment activity and trends in the United States. Here are a couple interesting 2012 highlights: The median angel round size was $600K; The median angel round size was $1.5M when angel groups co-invest with other types of investors; The median pre-money valuation for early stage angel group deals was $2.5M; 63% of angel group deals were in companies with revenue; 56% of angel group deals were in new companies; 11% of 2012... More

CONTRIBUTED BYTrent Dykestrent.dykes@dlapiper.com Today the Angel Resource Institute, Silicon Valley Bank and CB Insights released their angel group update for Q3 2012, the Halo Report. The Halo Report analyzes angel investment activity and trends in the United States. Here are a couple interesting highlights: The median angel round size was $640K; The median angel round size was $1.59M when angel groups co-invest with other types of investors; The median pre-money valuation for early stage angel group deals was $2.6M; California was the most active region for angel deals, both in number of deals (21.4%) and total dollars invested (28.0%); and The top three... More

CONTRIBUTED BYTyler Hollenbecktyler.hollenbeck@dlapiper.com In an earlier post we defined the term “pre-money valuation" and explained how this valuation is used to calculate the price per share at which stock is sold in a VC financing.  Actually determining this “pre-money” or “pre-investment” valuation, though, is often one of the most fundamental terms for founders and investors to negotiate, as it effectively sets the relative percentage ownership levels of the two groups (assuming a fixed investment amount). Despite this fundamental character, “calculating” an appropriate valuation (or even a range thereof) can be quite difficult with startups, particularly pre-revenue or pre-product companies, for... More