Remove Demand Remove Dilution Remove Equity Remove Forecast
article thumbnail

Flexible VC, a New Model for Companies Targeting Profitability

David Teten

From RBI, Flexible VCs borrow the ability to reap meaningful returns without demanding founders build for an exit. From traditional equity VC, Flexible VC borrows the option to pursue and reap the rewards of an outsized exit. Flexible VC 101: Equity Meets Revenue Share. Equity Ownership. Yes, typically preferred equity.

article thumbnail

2010 VC Funding Outlook for Startups – Prepare for Winter (Part 3/3)

Both Sides of the Table

It is also a result of pent-up demand. We spent our future since the equity was artificial. The IMF just raised its global growth forecast from 2.5% My advice : if you’re raising a $750,000 round and you have demand for $1.2 In the following post I argue that this increased pace may be temporary. So why the ’09 bounce?

Insiders

Sign Up for our Newsletter

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

article thumbnail

Founders Should Set Aside More Equity for Their Team & “Split the Pain” With Investors

Hunter Walker

Employee options pools, typically created at the point of financings, shouldn’t be treated as haggling over dilution, but rather a strategic resource that will help founders build the best team and, by extension, a more valuable company.

Equity 94
article thumbnail

Looking for investors? Here’s how to value your startup

The Next Web

Supply and demand. To start, let’s not forget about the obvious: the natural economic principles of supply and demand apply to valuing your business. your equity in a hot new patented technology business), the higher the demand (e.g., your equity in a hot new patented technology business), the higher the demand (e.g.,

Valuation 167
article thumbnail

Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

The investors and the entrepreneurs are – or should be – aware that the price of the company’s equity is set by the market – in simplest terms, what an informed buyer is willing to pay.   Note that this applies only to earl stage Series A-type equity financings and assumes no cash dividends are paid to investors.

article thumbnail

What Most People Don’t Understand About How Startup Companies are Valued

Both Sides of the Table

Valuing any company can be difficult because it requires a degree of forecasting future growth & competition and ultimately the profits of the organization. The Laws of Supply & Demand. The most basic chart of microeconomics is a supply & demand curve. Demand represents a buyer and supply a seller. The result?

Valuation 150
article thumbnail

The New Funding Landscape

www.paulgraham.com

Founders never really likedgiving up as much equity as VCs wanted. 5 ] But the advantage of these medium-sized rounds is not just thatthey cause less dilution. The short term forecast is more competition between investors, whichis good news for you. They dont take boardseats, so they dont need a big percentage of your company.