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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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Startup Funding – A Comprehensive Guide for Entrepreneurs

ReadWriteStart

The shares given out can either be common stocks or preferred stocks. ? Debt investment. These usually play a role in the very early stage of your business, primarily pre-revenue. The seed stage is focused on building the core team, product optimization, exploring avenues for monetization. ? Early-stage.

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Flexible VC, a New Model for Companies Targeting Profitability

David Teten

Yes, via conversion rights at a valuation cap. Yes, via conversion rights at a valuation cap. Seed-stage compatible: Like traditional equity VC investors, Flexible VCs accomodate early-stage investment risk within their portfolios better than a traditional RBI funder. Flexible VC: Compensation-based.

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How to Fund Your Startup Without Losing Control

Up and Running

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. By contrast, obtaining a pre-money valuation of $5 million for a business with a new viable product and even very minimal sales is somewhat reasonable.

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Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

Term-sheets and Valuations: Thinking about Negotiations.   I’ve sat down with entrepreneurs and a copy of a term sheet guide I like [ “Term Sheets & Valuations - A Line by Line Look at the Intricacies of Venture Capital Term Sheets & Valuations ” by Alex Wilmerding, Aspatore Press.] The Valuation Question.

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Three Startup Financing Myths You Should Avoid

YoungUpstarts

To do that you have to show how your market is big enough (a multi-billion dollar market) to support that kind of valuation. Many entrepreneurs waste time talking to investors who are at the wrong stage, sector or tribe. Myth #3: Take the Highest Valuation You Can Get. Valuation is a touchy subject for most entrepreneurs.

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Early stage money: The problem with PPMs

Berkonomics

Like most angel investors, I have preferences for the terms and conditions of investment and intend to negotiate with entrepreneurs on those terms, such as valuation, company structure, the makeup of the board of directors, liquidation preferences and others. The PPM does not meet the investing terms and conditions of the angels.