Both Sides of the Table

JULY 22, 2010

How VC’s Calculate Valuation : We walked through a standard deal where you raise $1 million at a $3 million pre-money valuation leading to a $4 million post money valuation. You’ll need to hire and retain talen to grow your company. The VC assumes you’ll have an option pool.

Valuation 405

Valuation Liquidation Preference Pre-Money Valuation Term Sheet 405

Both Sides of the Table

MAY 13, 2013

The Aqui-hire Business. If the money comes from professional investors it usually has a “liquidation preference” meaning that their money comes out before the founders or common stock. (If It says if you want to make “real” money - quit. Get some famous angel or seed money.

Liquidation Preference 357

Liquidation Preference Early Stage Retention Lock-up Period 357

thestartuplawyer.com

FEBRUARY 24, 2010

Who must be a co founder and who can remain a hired principal? When I find, and hire on options, the three perfect CEs/directors must I consider them co founders and treat them accordingly? Who must be a co founder and who can remain a hired principal? He obviously never launched a startup and got shafted by a co-founder.

Cofounder 40

Cofounder Founder Preferred Stock Startup 40