Remove Cap Table Remove Hiring Remove Option Pool Remove Valuation
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Want to Know How VC’s Calculate Valuation Differently from Founders?

Both Sides of the Table

Other founders, “as a privately held company we don’t disclose our valuation.&# Me, “dude, I’m not a journalist. I just want to figure out what a fair valuation is.&# I figured all the VC’s talked so we should. This starts with understanding how VCs and entrepreneurs often see valuation differently.

Valuation 405
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Cap Table Clean Up

ithacaVC

When raising money from investors (angels or VC), it is critical to have a presentable and clean cap table. The share price is calculated by taking the pre-money valuation and dividing it by the number of shares outstanding pre-money. So Share Price (SP) = Pre-Money Valuation (PMV) / Shares Outstanding (SO).

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Cap Table Explained — What is it and How to Maintain it for Investors

Up and Running

And as the company grows, it brings on new people and may decide to issue stock options to attract new staff and funding from investors. This is all incorporated into a document called a Cap Table. . A cap table will help you in the strategic management of business decisions. What is a cap table?

Cap Table 112
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What to expect before accepting the offer to become Engineer #1 at a startup

The Next Web

They were referring to non-founder engineers, most commonly the first hire for technology businesses. Cap tables sound intimidating. Startup employees are granted common shares out of something called an option pool. Overlooked here is the valuation of the specific startup along its growth trajectory.

Engineer 129
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VCs eating our own dog food: Using technology and analytics to make better investments

David Teten

The reports showcase raw data, analytics, visualizations, and benchmarking statistics on the company from dozens of sources, including team, intellectual property, technology, product, financial, banking, marketing, customer, risk, valuation, and investment information.”. ff Venture Capital hired two full-time engineers to build out Totem.

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The Option Pool Shuffle

venturehacks.com

SUPPORTED BY Products Archives @venturehacks Books AngelList About RSS The Option Pool Shuffle by Nivi on April 10th, 2007 “Follow the money card!&# – The Inside Man, Three-Card Shuffle Summary: Don’t let your investors determine the size of the option pool for you. Don’t lose this game. share to $1.00/share:

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The Equity Equation

venturehacks.com

Offers from top-tier firms increase your valuation. In practice, you raise money or hire an employee because you need to, not because you want to. Say the equity equation tells you to pay a prospective hire above market. You should still pay the hire a market rate and save the company some equity. If no, she is a no hire.

Equity 40