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

Tim Keane

For angel groups, the distinction between groups and VCs on this issue is dwindling, especially as angel groups do bigger rounds of financing.   Note that this applies only to earl stage Series A-type equity financings and assumes no cash dividends are paid to investors. . Second a liquidation preference and a participation.

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Working for Equity Instead of Cash

genylabs.typepad.com

Tracking and Forecasting the Trends Impacting the Future of Small Business. I wont bother going into details on start-up financing terms ( see this post for an overview of typical VC terms) except to say if you dont know and understand: the firms cap table and valuation. where your stock sits in the liquidity preference stack.

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Startup Lessons: Board Management

Venture Chronicles

Building good forecasting models against the backdrop of fast changing performance factors is no small task, and planning is 1/2 of the planning/controlling responsibility a team is responsible for, but typical boards end up spending a lot of time on the controlling part of the equation.

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Grubhub and Seamless: Effecting The Elusive Private-Private Merger

abovethecrowd.com

There are common stock, common options, and as many as three to five different layers of preferred stock, each with a specific liquidation preference. Most models are also based on forward forecasts, which offers another avenue for inflation. The only way around this is to reverse your way of thinking.

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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. Why Financing in Falling Markets is So Damn Difficult. And so it goes. Back to my non-VC example. Plus, down rounds trigger anti-dilution provisions.

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