article thumbnail

When Should Startup Founders Discuss Valuation with Seed VCs?

View from Seed

Using NextView as an example, since we both seek to lead the seed round and only lead during this round, I’ve seen this trend manifest in one of two ways: In a priced round, the entrepreneur will often share their valuation ask (or a stated floor) for the pre-money valuation of their company much sooner in the process.

Valuation 336
article thumbnail

Sell Your Startup with a Mergers and Acquisitions Advisor

The Startup Magazine

The first step in creating a business plan to sell your startup to an acquirer is to create a valuation of your company. The valuation should include a business optimization plan that outlines strategies and tactics for growing transferable value, attracting potential buyers, and driving deal value.

Merger 121
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

What Entrepreneurs Should do about Price Fixing

Both Sides of the Table

At what valuation? We discuss deal structures. So if two investors even go so far as to agree to fix prices, which is issue 1, the company should say no thanks to that valuation and keep shopping for other lenders, of which there are many, to get a better price. Have you looked at competition? How much are they raising?

article thumbnail

Which books would you recommend to a VC analyst-associate?

Gust

Insights from Leading Practitioners on the Art of Raising a Fund, Deal Structuring, Value Creation, and Exit Strategies. Term Sheets & Valuations. A Line by Line Look at the Intricacies of Term Sheets & Valuations. Venture Deals. Raising Venture Capital for the Serious Entrepreneur. Mastering the VC Game.

article thumbnail

5 Risks Of Buying A Business And Profiting Off The Opportunities They Create

YoungUpstarts

The opportunity: Use this as a negotiating point when bargaining for the deal. If the business IS the business owner, then that person needs to be part of the deal. Structure the buy-out to include an employment contract or consulting agreement, as well as an earn-out. Ask about the company culture and decide what parts to keep.

article thumbnail

Keep Term Sheets Simple for Quicker Cash to Spend

Startup Professionals Musings

It’s true that Angel investors typically do not present entrepreneurs with overly complicated deal structures, especially when compared to venture capitalists. The price is the percent of ownership given to the investor, calculated as “investment/post-money valuation.” Seat on the board.

article thumbnail

Financing Acquisitions: Keys to Structuring the Deal And Obtaining The Funding

YoungUpstarts

To safeguard your team from getting emotionally over-committed to a specific business, carefully balance the price being offered for the target, the strategic problem or opportunity it addresses, the likely near-term cash flow of the target, the integration strategy, the inherent risks and the deal structure.