SoCal CTO
SEPTEMBER 27, 2011
Suppose further that he's going to cost $60k a year in salary and overhead, x 1.5 = $90k total. If the company's valuation is $2 million, $90k is 4.5%. Of course, to be able to use this kind of formula, you will need to be able to determine how much impact the person will have and figure out a valuation.
Tim Keane
JANUARY 12, 2010
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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Agile VC
APRIL 17, 2011
Obviously most of these employees are working hard primarily for equity upside compensation, but Kayak’s personnel costs are roughly $200K/head so the company is highly productive on a per employee basis. Post-money valuation probably no higher than $12M (2). Pre-money valuation was approx. Pre-money valuation was approx.
Both Sides of the Table
JUNE 5, 2015
In the old days VCs funded off of a “pre-money” valuation. If you add the pre-money valuation (let’s say $8 million) to the amount of money you’re raising (let’s say $2 million) you get the post-money valuation. How much is in the option pool? Why do investors care about this?
The Startup Lawyer
FEBRUARY 4, 2011
The following are some issues to consider and actions to take before accepting an incubator’s offer: (1) Calculate Valuation and Determine Value. Pre-money valuations startups receive from incubators are typically low…really low. The “revised for the cash investment only&# pre-money valuation is $600,000. (2)
Austin Startup
JANUARY 25, 2020
Better safe than sorry, so I paid it, including the cost of emails and phone conversations, even if I had a simple question that took a minute or two over the phone to answer. The lawyer’s rate was crazy?—?$575 575 per hour?—?and and that’s with a discount. The regular rate, he told me, was $750 per hour.
www.inc.com
SEPTEMBER 24, 2011
That cost him accounting fees, legal fees, and time because the financing round couldnt close until the arrangements were formalized. As you think about how much equity to offer, have a reasonable valuation in mind thats been determined using professional advice. Decide the maximum number of shares youll be granting.
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