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NOVEMBER 24, 2010 The downside of high valuations
When it comes to deal structuring, the higher you push the valuation, the more “protections investors will build in. Those protections usually are as follows: Multiple liquidation preferences : It is standard for investors to have a 1x preference. With a multiple preference, investors can take 1.5,
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| || || || | MARK BIRCH
AUGUST 16, 2011 Include Deal Terms or Not?
I had a discussion the other night with an entrepreneur about whether to include specific deal terms in the pitch deck or investor meetings.
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- The Corrosive Downside of Acquihires
The Aqui-hire Business Many buying companies price these deals
on the basis of $1 million per engineer on the team for an early-stage deal
. 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. And who cares, right? MORE >>
SEED STAGE CAPITAL in search of.the ideal term sheet
| MONDAY, AUGUST 24, 2009
Rather than comment on it directly, I am re-publishing sections from a post on TechCrunch: " The key terms include the elimination of participation with preferred
stock, a 1x liquidation preference
, and single trigger vesting acceleration on acquisition. When you’re only raising $1 million, that’s a big deal
." MORE >>
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