Remove Naming Remove Option Pool Remove Term Sheet Remove Valuation
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Want to Know How VC’s Calculate Valuation Differently from Founders?

Both Sides of the Table

Back in 1999 when I first raised venture capital I had zero knowledge of what a fair term sheet looked like or how to value my company. Due to competitive markets we ended up with a pretty good term sheet until we needed to raise money in April 2001 and then we got completely screwed.

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5 Tips for Raising a Venture Round

ReadWriteStart

As Mark Suster pointed out yesterday on his blog , he's seeing more and more cases where "entrepreneurs are working hard to make sure they have as many VC names and famous angels on their cap table for signaling value." Tip 4: Really Understand Key Terms. Once you get the term sheet make sure you know how to read it.

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5 Tips for Raising a Venture Round

www.readwriteweb.com

As Mark Suster pointed out yesterday on his blog , he's seeing more and more cases where "entrepreneurs are working hard to make sure they have as many VC names and famous angels on their cap table for signaling value." Tip 4: Really Understand Key Terms. Once you get the term sheet make sure you know how to read it.

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Using warrants to pump up your VC valuation

www.mattbartus.com

How to pump up your VC valuation. Let’s say you receive a term sheet for a $1 million investment at a $3 million fully diluted pre-money valuation, and you’re kind of disappointed. You have a 20% option pool, so you know this will take your ownership down from 80% to 60%, and the VC will get 25%.

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How to Evaluate an Offer from a Startup Incubator

The Startup Lawyer

The following are some issues to consider and actions to take before accepting an incubator’s offer: (1) Calculate Valuation and Determine Value. Pre-money valuations startups receive from incubators are typically low…really low. The “revised for the cash investment only&# pre-money valuation is $600,000. (2)

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VCs eating our own dog food: Using technology and analytics to make better investments

David Teten

Pro Publica has a Nonprofit Explorer database searchable by principal name on all nonprofit filings, so you can see a person’s nonprofit activities. . Atlassian open-sourced their M&A term sheet , a very aggressive move which helps smooth the M&A process, by reducing the number of degrees of freedom in a negotiation.

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How to Fund a Startup

www.paulgraham.com

Another concept we need to introduce now is valuation. I say "in theory" because in early stageinvesting, valuations are voodoo. As a company gets more established,its valuation gets closer to an actual market value. As a company gets more established,its valuation gets closer to an actual market value.