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Want to Know How VC’s Calculate Valuation Differently from Founders?

Both Sides of the Table

Back in 1999 when I first raised venture capital I had zero knowledge of what a fair term sheet looked like or how to value my company. Due to competitive markets we ended up with a pretty good term sheet until we needed to raise money in April 2001 and then we got completely screwed. No hidden terms.

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Revisiting Paul Graham’s “High Resolution” Financing

Both Sides of the Table

Paul Graham’s assertion that “any startup founder can tell you the most common question they hear from investors is not about the founders or the product, but “who else is investing?&# Tags: Raising Venture Capital Startup Advice Tech Market Analysis Term Sheets. When I’m in, I’m in.

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LinkedIn: The Series A Fundraising Story ? AGILEVC

Agile VC

This also appears as a guest post at Fortune’s Term Sheet. Many assume it was a cakewalk, based on the success LinkedIn has enjoyed over time and the current stature of our founder/CEO Reid Hoffman (now Chairman). Yes… he was a very successful PayPal exec and previously co-founder & VP Product of SocialNet.

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Brad Feld Drops Knowledge. Here’s What He Said …

Both Sides of the Table

One of the successful investments was a company called Nigenisis, which ended becoming a public company in 1999. and one of the founders of Oblong, John Underkoffler, was an MIT Medialab PHd., The following is a brief series of quotes from just ten of the approximately 30 different topics discussed in this incredible interview.

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Retro: My Favorite Blog Post on Raising VC

Both Sides of the Table

I had previously raised VC in 1999, 2000, 2001 and 2005. Another called Parker Harris, the co-founder and CTO. My blog linked to Brad Feld’s blog because I was so grateful for his series on term sheets and he was one of the biggest reasons that as a VC I felt compelled to blog. That changed very quickly.

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One Book Every Entrepreneur and VC Should Own

Both Sides of the Table

When I first started as a startup CEO in 1999 there were no guides on raising venture capital. There were no explanations for all of the confusing details outlined in a term sheet. Founders don’t often think about “primary&# stock vs, “fully diluted&# stock in terms of voting rights. I never did.

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Should Founders Be Allowed to Take Money off the Table?

Both Sides of the Table

If a company has reached a level of success, has been around for a few years and you believe the company has potential to break out into a much bigger company then you should let the founders take money off of the table. Founders however are asked to take low salaries and never really get back the time they worked for free.

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