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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. I’m not sure I really even need to write this at length because Nivi absolutely nailed the topic in his article “ The Option Pool Shuffle.&#. No option pool shuffle.

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Should You Share Equity with Consultants?

www.inc.com

Naming a Business. For example, Morse notes that neither C corporations nor venture capital funds structured as partnerships can, by law, be S corporation shareholders. Create an options pool, if nothing more than in your mind, so you have some parameters to work within," Durkin says. Tools & Research. Newsletters.

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

David Teten

Private equity and venture capital investors are copying our sisters in the hedge fund world: we’re trying to automate more of our job. . Pro Publica has a Nonprofit Explorer database searchable by principal name on all nonprofit filings, so you can see a person’s nonprofit activities. . Fincura specializes in serving lenders.

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How to Fund a Startup

www.paulgraham.com

A big-name VC firm will not screwyou too outrageously, because other founders would avoid them ifword got out. When we got into such a scrape, our investorstook advantage of it in a way that a name-brand VC probably wouldnthave. Thats where the name"incubator" comes from. What is an incubator? Im not sure myself.

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How Many Investors are Too Many?

Both Sides of the Table

When you consider that they’ll also want a 15-20% option pool in the company you’re talking about founders owning as little as 40% after just one round. There are ones I’ve worked with like True Ventures, First Round Capital, Greycroft, Rincon Ventures … just to name a few.

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