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Feld Thoughts

Remove Pre-Money Valuation Related Topics
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Finance Fridays: Getting Started – Allocating Equity and Founder’s Investment

Feld Thoughts

JULY 29, 2011

Jane felt comfortable with receiving 10% for $50k, but no less, so they agreed on a $450k pre money valuation of their startup. Dick hated to think that he would be diluted by more than 20% of his stake over $50k and proposed that Jane receive 10% incremental equity for her $50k.

Equity 137
Equity Finance Pre-Money Valuation Denver 137
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The Silliness Of Recapping Seed Rounds

Feld Thoughts

JULY 14, 2015

The term sheet converts all the convertible debt into a post-money valuation of $100, essentially making the convertible debt worthless. The new money comes in at a pre-money valuation of $100, but includes a complete refresh of founder equity to 40% of the company. So they recapitalize the company.

Recapitalization 70
Recapitalization Pre-Money Valuation Post-Money Valuation Angel Investor 70
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