Later stage startups have revenue numbers, customer acquisition costs and marketing analyses that can all be plugged into magic financial formulae by VC whiz kids that pop out instant valuations.  Most of the time, establishing valuation ends up being a crap shoot. This is only a general guide on early stage valuation.  MORE >>

Since an investor is focused on ROI, the implication to valuation now becomes clear.  All else being equal, the lower the valuation the higher the (potential) ROI.  Valuation (and any subsequent raises) are casual to the percent of the sale received by the investor.  Founders    55%. By Bob Aholt. Now for some details.  MORE >>

Other founders, “as a privately held company we don’t disclose our valuation.&#  Me, “dude, I’m not a journalist. I just want to figure out what a fair valuation is.&#  I figured all the VC’s talked so we should. Investors own 25%, the founders own 75%. turned them down. They were nonplussed. MORE >>

Finance Friday’s gets off the ground with today’s post by introducing you to an imaginary startup, the entrepreneurs that we’ll being following throughout the series, and their first challenges: splitting up the founders’ equity and addressing the case where one of the founders provides the initial seed capital for the business. MORE >>

Following my posts on improving the performance of founding teams , founder agreements and strategies for dealing with poorly performing co-founders , I continue to receive many emails at FastIgnite from entrepreneurs having difficulties with managing and formalizing the relationships with their co-founders. She meets Harry.  MORE >>