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When Should Startup Founders Discuss Valuation with Seed VCs?

View from Seed

They’ll therefore systematically seek to invest in startups at the lowest cost-basis possible. In this case, it’s almost like opening a job interview by sharing salary requirements. As a funding conversation progresses from initial to subsequent meetings, the topics of round structure and pricing become much more natural.

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Signaling Pricing Expectations Early in Seed Investment Discussions

Genuine VC

This handful of people is extremely and unabashedly cheap, as they’re fully self-aware of their role within the funding ecosystem and are accordingly systematically seeking to invest in startups at the lowest cost-basis possible. It’s like opening a job interview by sharing salary requirements.

Valuation 136
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The Dos And Don’ts Of Selling Your Business

Duct Tape Marketing

3:57] If I’m that solo owner and I’ve been paying myself a nice salary and there’s maybe 10% profit at the end of it – is that considered cash flow or is that considered an expense of the business? [6:34] 07:47): Well, where are they gonna get the rest of the money and what's that gonna cost them? 09:23): Sure.

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Flexible VCs With Structures Between Equity and Revenue-Based Investing

David Teten

Versatile has built out a suite of no-cost portfolio acceleration services to help its companies succeed. All Earnest investments are made using the Shared Earnings Agreement (SEAL) – a custom salary/profit share structure, aligned with how most bootstrapped founders are compensated. Details here.

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Cracking The Code: The Bessemer 10 laws of SaaS - Fall 2008.

Cracking the Code

Ultimately, finding a low-cost, repeatable way to show customers how to be successful with your solution is as important as the solution itself. You put into words what we were thinking for our cost of client. Michael Kassing. Let me just say "Thanks". You validated our business model and added huge value to our efforts.

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Piercing the Corporate Veil of Sweat Equity

grasshopperherder.com

Without receiving a real salary, I’d be wary of signing a non-compete in an area which I have domain expertise in. Lastly and most excitingly , it is very very easy in this structure to cause Company B to go bankrupt. The founder who owns 51% of Company B can elect to pay himself a salary of $1 USD. At what price?

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Why Leave A Six Figure Corporate Job For Internet Entrepreneurship?

Entrepreneurs-Journey.com by Yaro Starak

I believe in maxing out tax advantageous vehicles like the 401(k) and Roth IRA, and dollar cost investing over time in no to low load mutual funds, including index funds. Establishing this website cost me less than $2,000 and a ton of man hours, headaches and heart burns to go with it. Where do I get the money to invest in the markets?