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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. I’m not sure I really even need to write this at length because Nivi absolutely nailed the topic in his article “ The Option Pool Shuffle.&#. No option pool shuffle.

Valuation 405
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Should You Share Equity with Consultants?

www.inc.com

Before Roving Software could receive its first round of financing from professional investors, in early 1999, he had to put all the stock arrangements in writing. For example, Morse notes that neither C corporations nor venture capital funds structured as partnerships can, by law, be S corporation shareholders.

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Is it Time for You to Earn or to Learn?

Both Sides of the Table

If you never raise another round of venture capital (a big if) and if your company is sold for the normal venture exit ($50 million on average for 200 or so annually that get sold) then what is your stake? It was 1999. Ventro was trading at $8 billion on sub $2 million of revenue. It was easy to do these calcs.

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Venture Deals 4e German Edition

Feld Thoughts

IPO issues: Possibly the biggest problem for German venture-backed companies is the very low number of IPOs in Germany. The boom years of 1998 (79 IPOs), 1999 (175 IPOs), and 2000 (142 IPOs) are long gone. Employee option pool: The framework conditions for employee option pools remain a major problem in Germany.

Germany 165
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How Many Investors are Too Many?

Both Sides of the Table

You may feel as I did in 1999 that the more smart people around the table the more intros you’ll have, the more sage advice you’ll receive and the more impressive you’ll seem to outsiders. The Perils of Many. I understand the appeal of having many VC firms on your cap table.

Dilution 314