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5 Equity Distribution Parameters For Key Contributors

Startup Professionals Musings

Investors may not be called cofounders, but they always get equity, commensurate with their share of the total costs anticipated, or share of the current valuation. Amount of venture funding provided. The challenge is for real cofounders to keep their equity percentage above 50%, or they effectively lose control of operational decisions.

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What Does the Post Crash VC Market Look Like?

Both Sides of the Table

We drew this conclusion after a meeting we had with Morgan Stanley where they showed us historical 15 & 20 year valuation trends and we all discussed what we thought this meant. But rest assured valuations get reset. When you look at how much median valuations were driven up in the past 5 years alone it’s bananas.

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Want to Know How VC’s Calculate Valuation Differently from Founders?

Both Sides of the Table

Other founders, “as a privately held company we don’t disclose our valuation.&# Me, “dude, I’m not a journalist. I just want to figure out what a fair valuation is.&# I figured all the VC’s talked so we should. This starts with understanding how VCs and entrepreneurs often see valuation differently.

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6 Realistic Tactics For Funding Charitable Businesses

Startup Professionals Musings

A nonprofit organization is generally defined as an organization that does not distribute its surplus funds to owners or shareholders, but instead uses them to help pursue its goals. Some nonprofit entrepreneurs think they can skip the whole plan, rather than just the sections on valuation, equity offered, and exit strategy.

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Why a Company Can’t “Be More Like a Startup”

Steve Blank

If they select a business model that targets industry incumbents, they don’t have to worry about upsetting existing customers, partners or distribution channels. Existing companies also use network effects of monopolies/duopolies, distribution channel kickbacks, etc., to stifle competition.). Here are some of the most visible examples.

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How is the VC Asset Class Doing?

View from Seed

The top quartile has distributed 2.03x (vs. 1.68) and the median fund now has distributed 1.27X (vs. The longer the portfolio maintains the same value without distributing back cash, the worse the fund’s ultimate IRR. Based on that metric, the top quartile fund has now distributed 2.03X after 12 years. 2 years ago).

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How to Talk About Valuation When a VC Asks

Both Sides of the Table

I thought I’d write a post about how to talk about valuation at a startup and give you some sense of what might be on the mind of the person considering funding you. It’s not uncommon for a VC to ask you how much capital you’ve raised and what the post-money valuation was on your last round. is to start with just the data.

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