Common Stock Early Stage Hiring Pre-Money Valuation 
Both Sides of the Table
JULY 22, 2010
I couldn’t understand why they wanted so many options until a friend pointed out that this just lowered their “true&# pre-money valuation (they also asked for some sharp elbowed terms in the deal). You’ll need to hire and retain talen to grow your company. I turned them down. They were nonplussed.
Up and Running
SEPTEMBER 19, 2017
They allow you to hire more people, purchase new technology, and establish new business connections, among many other benefits. That’s because obtaining a pre-money valuation for a concept level technology company in excess of $1 million is difficult, particularly for a startup founder without a proven track record.
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Both Sides of the Table
SEPTEMBER 5, 2012
As in, “your money into my company will convert at a 15-20% discount to the next round of capital I raise with a maximum price of $8 million pre-money valuation (or whatever the cap was).” You rarely find full ratchets in early-stage deals any more. What happens in a sale or acqui-hire?
Up and Running
SEPTEMBER 20, 2021
Furthermore, there are various forms of equity, such as preferred stock, common stock, and convertible notes, which influence the present and potential future investors. For instance, the cap table will help you with various possibilities while running business activities like available options and pre-money valuations faster.
www.paulgraham.com
APRIL 28, 2010
4 ] Seed Funding Firms Seed firms are like angels in that they invest relatively smallamounts at early stages, but like VCs in that theyre companiesthat do it as a business, rather than individuals making occasionalinvestments on the side. Angels and even VC firms occasionally do this, but they alsoinvest at later stages.
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