Both Sides of the Table

SEPTEMBER 18, 2014

Revenue multiple? Less than you’ll probably grant your most junior employees in stock options? Stock Option plans. 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? Me: I know.

Venture Capital 417

Venture Capital Liquidation Preference Valuation Term Sheet 417

Scott Edward Walker

NOVEMBER 2, 2011

Button-down IP ownership and assignment issues (see post here ). Don’t issue stock options unless a proper option plan is in place and a valuation has been done in compliance with Section 409A of the Internal Revenue Code (see post here ).

Accredited Investor 111

Accredited Investor Stock Options Delaware Silicon Valley 111

Gust

DECEMBER 8, 2011

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.

Intellectual Property 139

Intellectual Property Non-disclosure Agreement Delaware Stock 139

Scott Edward Walker

OCTOBER 27, 2015

Button-down IP ownership and assignment issues (see post here ). Don’t issue stock options unless a proper option plan is in place and a valuation has been done in compliance with Section 409A of the Internal Revenue Code (see post here ).

Intellectual Property 40

Intellectual Property Accredited Investor Vesting Delaware 40

Gust

SEPTEMBER 17, 2014

Revenue multiple? Less than you’ll probably grant your most junior employees in stock options? Stock Option plans. 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?

Liquidation Preference 153

Liquidation Preference Valuation Term Sheet Stock 153

infochachkie.com

SEPTEMBER 24, 2011

For instance, if a consultant proposes to help you with public relations, pay them a commission equivalent to the greater of a flat fee per story placed or a percentage of revenue generated from the PR coverage. The final straw came when I asked the latest 25-year old a simple ‘yes / no’ question related to stock options.

Equity 40

Equity Silicon Valley Cofounder Technical Review 40

Tim Keane

JANUARY 12, 2010

3]   However, if they are built bottom up, they demonstrate and make explicit a range of business model assumptions the entrepreneur is using to think about his business and its revenue model.   Pre-bubble Siliicon Valley deals were popularly valued at multiples of revenue. This is why a bottom up approach is more credible.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68