think this is an important thing to talk about– it’s certainly something that would have resonated with me before I raised money from investors, but now falls pretty flat. Valuation does NOT equal market value for the company. Founders don’t like to give away a lot of equity when raising money (nor should they!). MORE >>

Entrepreneurs sometimes assume an initial agreement with an angel is a commitment, so they start spending before any money is received. The price is the percent of ownership given to the investor, calculated as “investment/post-money valuation.” Remember a term sheet agreement is not a deal until the check clears. MORE >>

This would mean that last year when Atomico and Accel Partners invested $42 million into the company, the post money valuation was exactly $210 million. The Finnish Arvopaperi magazine has announced the ownership structure of Rovio, the creators of Angry Birds. Kaj Hed is Niklas' father and Mikael is Niklas' cousin. Update 7.17 MORE >>

Valuation: Come up with what minimum valuation you’d be happy with but never share that number with any investor. When people ask about price, simply tell them your last round post-money valuation and talk about the progress you’ve made since then. If your number is too high, you scare people off. MORE >>

The liquidation preference means what is sounds - namely that preferred stock holders with this right get all of their money back (i.e. I get the same question a lot from entrepreneurs raising equity capital (venture capital or angel funding). The question is whether they need to issue common or preferred stock. read more. Dave Lavinsky MORE >>