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

Tim Keane

Term-sheets and Valuations: Thinking about Negotiations.   I’ve sat down with entrepreneurs and a copy of a term sheet guide I like [ “Term Sheets & Valuations - A Line by Line Look at the Intricacies of Venture Capital Term Sheets & Valuations ” by Alex Wilmerding, Aspatore Press.] The Valuation Question.

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Founders Should Set Aside More Equity for Their Team & “Split the Pain” With Investors

Hunter Walker

But employee option pool is important enough that I wanted to briefly expand upon my comment above. Since Homebrew typically leads/co-leads seed rounds, we assist in helping founders design and manage their pool against their hiring forecast. As you can see, Weekend VC Twitter gets pretty wild and crazy!!!!

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How to Divide Equity to Startup Founders, Advisors, and Employees

thinkspace.com

Chris Dixon wrote a blog post about “ The one number you should know about your equity grant “ The one number you should know about your equity grant is the percent of the company you are being granted (in options, shares, whatever – it doesn’t matter – just the % matters). Percent of the outstanding option pool: meaningless.

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10 Steps to Success With Angel Investors

Business Plan Blog

This process may include the provision of various scenarios on revenues and costs as the investors validate forecasts initially presented. Pre-money valuation. A capitalization table showing the post-investment ownership structure of the business to include founders, option pool and investors in the current round.

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The New Funding Landscape

www.paulgraham.com

And those who do raiseVC rounds will be able to get higher valuations when they do. Ifthe best startups get 10x higher valuations when they raise seriesA rounds, that would cut VCs returns from winners at least tenfold. [ ButVCs never offered that option. 6 ] Some super-angels seem to care about valuations.