Both Sides of the Table
JULY 22, 2010
Other founders, “as a privately held company we don’t disclose our valuation.&# Me, “dude, I’m not a journalist. I just want to figure out what a fair valuation is.&# I figured all the VC’s talked so we should. This starts with understanding how VCs and entrepreneurs often see valuation differently.
SoCal CTO
SEPTEMBER 27, 2011
I was asked by a reader how much equity he should give out to early employees and to service providers in a very early stage startup. The first few people into a startup are on a spectrum of founder vs. early employee. If the company's valuation is $2 million, $90k is 4.5%. the better the startup will be.
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Tim Keane
JANUARY 12, 2010
Startups and angels: Along the way to success. Term-sheets and Valuations: Thinking about Negotiations. The Valuation Question. When companies seeking their first round of serious funding are good enough to receive a term-sheet from an investor, the first issue that always arises is valuation. Let’s start at the end.
Pascal's View
JULY 9, 2017
This is a fundamental issue that does, indeed, boil down to understanding the post-money valuation of a company. At its core, this issue points to the lack of understanding about the importance of post-money valuation by both entrepreneurs and investors. But it is also a topic that many find esoteric and difficult to grasp.
Agile VC
APRIL 17, 2011
AGILEVC My idle thoughts on tech startups. Post-money valuation probably no higher than $12M (2). Pre-money valuation was initially set higher but was adjusted to match the Ser B valuation. Pre-money valuation was approx. Pre-money valuation was approx. Pre-money valuation was at least $250M (2).
www.paulgraham.com
OCTOBER 23, 2010
Want to start a startup? August 2010 Two years ago I wrote about what I called " a huge, unexploitedopportunity in startup funding :" the growing disconnect betweenVCs, whose current business model requires them to invest largeamounts, and a large class of startups that need less than theyused to. Get funded by Y Combinator.
Both Sides of the Table
JUNE 5, 2015
Over the years I’ve written extensively about the downsides of convertible notes for startups such as here , here and here. In the old days VCs funded off of a “pre-money” valuation. How much is in the option pool? I can boil it down to how this tension plays out. Why do investors care about this?
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