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

Both Sides of the Table

When I went to raise money in 2006 I thought I knew every term in a term sheet but somehow I still got a bit duped by the option pool shuffle. You’ll need to hire and retain talen to grow your company. I had several term sheets and one of the leading term sheets had an option pool of 40% in it. That’s normal.

Valuation 405
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From Nothing To Something. How To Get There.

techcrunch.com

One of the things I do as a founder of a later stage startup is to meet with early stage entrepreneurs to help them get their companies going. Nine times out of ten, the meeting ends with them asking me for introductions to VCs. Inevitably, the excuses begin: I need to hire people to build the product.