SoCal CTO
SEPTEMBER 27, 2011
If the company's valuation is $2 million, $90k is 4.5%. Of course, to be able to use this kind of formula, you will need to be able to determine how much impact the person will have and figure out a valuation. I've talked about this topic before in How Investors Think About Valuation of Pre-Revenue Startups.
Pascal's View
JULY 9, 2017
This is a fundamental issue that does, indeed, boil down to understanding the post-money valuation of a company. At its core, this issue points to the lack of understanding about the importance of post-money valuation by both entrepreneurs and investors. But it is also a topic that many find esoteric and difficult to grasp.
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ReadWriteStart
SEPTEMBER 2, 2011
Therefore, going down the fundraising path is something many technology entrepreneurs will need to do and a critical step in the development of their business. Including things like liquidation preferences impact both future rounds and ultimate liquidity to why VCs ask to expand an option pool before investing as part of their term sheet.
Gust
AUGUST 30, 2012
Size, Growth, Concentration, Geography, Demographics, Competition, Channels, Regulatory Environment, Technological Developments, Adjacent Markets, Characteristics of the Deal.
www.mattbartus.com
DECEMBER 9, 2012
How to pump up your VC valuation. Let’s say you receive a term sheet for a $1 million investment at a $3 million fully diluted pre-money valuation, and you’re kind of disappointed. You have a 20% option pool, so you know this will take your ownership down from 80% to 60%, and the VC will get 25%. Option Pool.
Austin Startup
JANUARY 25, 2020
This developed into another question: Even more, since there’s so much that goes on within the community, how can I know in one place, on my phone, what’s going on?—?in Photo of the first online design in the library I shared my first design with my developer friend Eyesodike, who was then working for VISA as a developer.
Both Sides of the Table
NOVEMBER 4, 2009
If you’re thinking about joining as the director of marketing, product management manager, senior architect, international business development lead, etc. Let’s assume that the company raised it at a normal VC valuation, which means it gave up 33% of the company and thus $5 million / 33% = $15 million post-money valuation.
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