Remove Employee Remove Forecast Remove Liquidation Preference Remove Sales
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Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

It also assumes the entire value of the investment is captured for investors at a sale of the company in the time specified in the term-sheet.   In a bottom up approach, the forecast is built from actual user projections. This results in a range of sale prices; in this example from $118.6MM to $21MM.

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Working for Equity Instead of Cash

genylabs.typepad.com

Tracking and Forecasting the Trends Impacting the Future of Small Business. where your stock sits in the liquidity preference stack. what rights and preferences the founders and the other investors have. My post looks at this from the consultant/employee point of view. Lessons from a Failed Forecast.

Equity 40
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Accepting Outside Investors? Here Are 5 Things to Watch Out for in Your Contract

Up and Running

They generally also get additional rights that common shareholders don’t get, such as anti-dilution protection, and liquidation preference (discussed further below). Liquidation preference. Whether that’s true or not depends in no small part on how the liquidation preference clause was negotiated with outside investors.