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What Entrepreneurs Should do about Price Fixing

Both Sides of the Table

We discuss deal structures. Aint no market power here, likely, depending on the definition of “market.&# We discuss things like what the general prices in the market are but not in a price fixing way but in a general commentary way, like “I can’t believe that guy paid 40 pre!&# kind of way.

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Both sides must be fair in a term sheet negotiation.

Berkonomics

As an example, twenty five years ago, most VCs used common share deal structures. It was not until the later 1980s that the preferred share structure became popular. During those times, VCs had lots of conferences where thought leaders gathered to discuss term sheets, deal structures and fund strategies.

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When Should Startup Founders Discuss Valuation with Seed VCs?

View from Seed

By definition, all entrepreneurs should think that their endeavor is truly exceptional and above average. But, also by definition, that just can’t be the case. As a funding conversation progresses from initial to subsequent meetings, the topics of round structure and pricing become much more natural. Above-Market Value.

Valuation 336
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Signaling Pricing Expectations Early in Seed Investment Discussions

Genuine VC

By definition, all entrepreneurs should think that their endeavor is truly exceptional. But, also by definition, that just can’t be the case. Of course, as a funding conversation progresses from an initial to subsequent meetings, the topic of round structure and pricing become much more natural. Above market.

Valuation 136
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Knowing When It’s Time To Sell Your Startup

YoungUpstarts

Others are building their companies with the definitive intention of selling them. Negotiating a different deal structure could have prevented the price from dropping. A volatile stock market and economic recession have since changed much of this thinking. This begs the question. When is the best time to sell your company?

IPO 162
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Knowledge Is Power: Convertible Note Financing Terms, Part II

Gust

A term sheet keeps things relatively straightforward by summarizing the most significant deal terms in outline form, whereas the deal documents themselves (often referred to as definitive agreements ) — even for a relatively simple convertible debt financing — inevitably contain some densely written legalese.

Finance 79
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The Pre-Seed FAQ

K9 Ventures

So, I took it upon myself as a challenge to put together the definitive “ Pre-Seed FAQ.” Q: How are most Pre-Seed deals structured? By definition, yes. The Seed round may still well be the first round of financing in other geographies, but in the Bay Area, it’s definitely not so. Mark Suster has written about this.