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Do It Right The First Time, Part II: Visit the Doctor or House Call?

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From choosing a legal entity or jurisdiction to properly documenting IP assignments and stock issuances to complying with securities laws and avoiding potentially enormous tax penalties in the future, there is plenty here to warrant consulting a professional. Sales contracts accounting for significant revenue.

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Bad Notes on VC

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Revenue multiple? How will you price the next round? Your A round? Him: On metrics. We’ll have some proof points by then. What proof points? How will the lead determine a value? EBITDA multiple? Cashflow projections? I’m not sure. Me: There is no rational explanation for valuations of A round companies by ANY objective financial measure.