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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. No option pool shuffle.

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Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

Startups and angels: Along the way to success. Term-sheets and Valuations: Thinking about Negotiations. Please see later version of this post on May 16, 2010 Entrepreneurs are often not experts in the area of term-sheet negotiations and all of the surrounding issues. The Valuation Question. Let’s start at the end.

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Remind Me Why I Love You? (Why “In Person” is Everything)

Both Sides of the Table

You race back to the office to tell everybody how well it went and you wait for the follow-up call to have a partners’ meeting or talk about term sheets or at least dip into due diligence. The assistant tried to end the meeting twice but was shoooshed away. What do I do now? Some were interesting, some weren’t. You’re in control.

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Venture Deals 4e German Edition

Feld Thoughts

KG companies have decisive tax disadvantages for startups and are, therefore, rarely used in this area. Employee option pool: The framework conditions for employee option pools remain a major problem in Germany. BAND) and the Bundesverband Deutsche Startups e.V. German Startups Association).

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Term Sheet Purgatory

The Startup Lawyer

There’s a lot of advice about (1) how to attract VCs, and (2) how to negotiate a venture capital term sheet. Both sets of advice tend to ignore the gap between an investor’s expression of investment interest and your startup’s receipt of the term sheet.

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5 Tips for Raising a Venture Round

ReadWriteStart

While certainly not every business needs to raise venture financing, it is the path for many high-growth technology startups. As Steve Blank explained earlier this week on ReadWriteStart from research at The Startup Genome Project : One of the biggest surprises is that success isn't about size of team or funding.

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What’s In A Term Sheet?

Early Growth Financial Services

But do you know what to do once you’re asked to sign a term sheet? Let me say that first, you should have already retained a good startup lawyer. It could be the size of the option pool, or maybe the provisions around reverse vesting. You came, you pitched, you conquered. Congratulations!