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When Should Startup Founders Discuss Valuation with Seed VCs?

View from Seed

On the positive side for a founder, directly stating a high valuation expectation up front can anchor the negotiations to a higher level, assuming that an investor takes the leap of faith to invest. After angels, larger venture firms are probably next in terms of how variable they are when reacting to seed pricing asks by founders.

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Flexible VCs With Structures Between Equity and Revenue-Based Investing

David Teten

This essay is part of a series on alternative VC: I: Revenue-Based Investing: a new option for founders who care about control. III: Why are Revenue-Based VCs investing in so many women and underrepresented founders? VIII: The Leading Flexible VCs, With Structures Between Equity and Revenue-Based Investing.

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Should You Co-Found Your Company With a Software Development Shop (2 of 2)?

David Teten

I’ve been looking for suggestions for an initial deal structure that is appropriate for the theoretical case of a trusted dev shop putting in $100k in market-value of services over a 6 month period in time. What are the terms of their relationship with the founder? That said, I’m not sure of the most appropriate structure.

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Knowing When It’s Time To Sell Your Startup

YoungUpstarts

The founders sold the two year old company to eBay in 2005 for $2.6 Negotiating a different deal structure could have prevented the price from dropping. While each situation is unique, a pattern you may be noticing here is that founders of unprofitable startups tend to fare better when their businesses are sold.

IPO 162
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Walker Twitter Highlights: August 11th – 21st

Scott Edward Walker

I’m using Twitter as a form of micro-blogging to share interesting blog posts, articles and podcasts relating to entrepreneurship and startups, M&A and legal issues. p2Pkk0 cc: @jack “One by one, all the things founders dislike about raising money are going to get eliminated.” ” -Paul Graham bit.ly/prAYlf

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How to value your company for sale (Part 2)

A Smart Bear: Startups and Marketing for Geeks

That means you have to be that sure that that’s the number, regardless of deal structure. Here’s why: The acquirer knows that you, the founder, are looking for financial freedom. Tony Wright (founder of RescueTime) has a great article about it here. Finding this number is more complex than it sounds.

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The Pre-Seed FAQ

K9 Ventures

I’ll start with all the questions I can think of, from many different perspectives: founders, LPs, the press, and even other VCs. On April 10, 2014, I published a blog post, titled The New Venture Landscape , which explained why and how the venture ecosystem was shifting. Q: How are most Pre-Seed deals structured?