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

Tim Keane

  In a bottom up approach, the forecast is built from actual user projections.   At the financial level , and assuming a harvest of the investment in the company without the need for further financing, two terms stand out as driving economics: the dividend and the liquidation preference.   First , dividends.

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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. Social networking finally came of age connected the planet and leading to enormous wealth creation for Facebook employees and investors. Even Sequoia.

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