Forecast, Liquidation Preference and Pay to Play

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Forecast

Liquidation Preference

Pay to Play

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

Tim Keane

JANUARY 12, 2010

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.

Term Sheet

Term Sheet Valuation Dividend Liquidation Preference

What Most People Don’t Understand About How Startup Companies are Valued

Both Sides of the Table

FEBRUARY 14, 2016

Valuing any company can be difficult because it requires a degree of forecasting future growth & competition and ultimately the profits of the organization. So inside rounds get delayed and when there are non-participants you often find “recaps” or “structure” or “pay-to-play” provisions.

Valuation

Valuation Down Round Startup Later Stage

StartUpRoar

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

What Most People Don’t Understand About How Startup Companies are Valued

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