Remove Forecast Remove Liquidation Preference Remove Reference Remove Sales
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Working for Equity Instead of Cash

genylabs.typepad.com

Tracking and Forecasting the Trends Impacting the Future of Small Business. When we reference organizations that have provided us funding in the last year we will note it. where your stock sits in the liquidity preference stack. what rights and preferences the founders and the other investors have.

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

Up and Running

Perhaps the best way to explain it is by a reference to something most of us are already familiar with—the ever popular television show, Shark Tank. They generally also get additional rights that common shareholders don’t get, such as anti-dilution protection, and liquidation preference (discussed further below).