CTO Hire and Pre-Money Valuation

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CTO Hire

Pre-Money Valuation

Equity for Early Employees in Early Stage Startups

SoCal CTO

SEPTEMBER 27, 2011

For your first key hires, three, five, maybe as much as ten, you will probably not be able to use any kind of formula. For example, suppose you're just two founders and you want to hire an additional hacker who's so good you feel he'll increase the average outcome of the whole company by 20%. n = (1.2 - 1)/1.2 =.167. and we have 11.1%

Early Stage

Early Stage Equity CTO Hire Sweat Equity

Want to Know How VC’s Calculate Valuation Differently from Founders?

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.

Valuation

Valuation Liquidation Preference Pre-Money Valuation Term Sheet

StartUpRoar

Equity for Early Employees in Early Stage Startups

Want to Know How VC’s Calculate Valuation Differently from Founders?

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