Both Sides of the Table

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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?

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The Corrosive Downside of Acquihires

Both Sides of the Table

If you give $2 million for 20% of a company ($8 million pre + $2 million investment = $10 million post-money valuation) that has no product and no customers and it turns around 3 months later and sells for $5 million it would hardly be fair for investor to get $1 million back (20% of the proceeds). Change industries.