SoCal CTO
SEPTEMBER 27, 2011
I was asked by a reader how much equity he should give out to early employees and to service providers in a very early stage startup. Founders are likely not paid for a long time and have a sizeable equity percentage for early risk and having the concept. Same Value for Sweat Equity as Investment Dollars?
Altgate
DECEMBER 15, 2010
@altgate Startups, Venture Capital & Everything In Between Skip to content Home Furqan Nazeeri (fn@altgate.com) ← No one wants to tell you your baby is ugly More on Liquidation Preferences → Pre-Money Valuation vs Number of Founders Posted on December 15, 2010 by admin Here’s a chart of the day worth sharing.
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YoungUpstarts
OCTOBER 24, 2013
“The reality is that there has not been a reliable, simple, or cost-effective way to calculate an early stage company’s valuation – which is why so many entrepreneurs and angel investors get it wrong,” says Alan Lobock, co-founder of Worthworm. ” Ideaspotting investment pre-money valuation valuation Worthworm'
Both Sides of the Table
MAY 28, 2018
It’s true that some later-stage private equity firms like to fund “roll ups” (a company that acquires many related companies in it sector), but this is seldom the domain of VCs. Every VC knows that the amount you raise is often a proxy for your valuation.
Gust
APRIL 11, 2014
Let’s get right down to business: Dilution of founders’ and other early shareholders’ equity in startups is frequently a subject of intense interest and debate. That’s the concept of what some call mathematical dilution. Suppose it raises $2 million at a $6 million pre-money valuation.
Both Sides of the Table
SEPTEMBER 10, 2021
A-Rounds used to be $3–7 million with the best companies able to skip this smaller amount and raise $10 million on a $40 million pre-money valuation (20% dilution). These days $10 million is quaint for the best A-Rounds and many are raising $20 million at $60–80 million pre-money valuations (or greater).
Hunter Walker
AUGUST 7, 2017
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. But employee option pool is important enough that I wanted to briefly expand upon my comment above.
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