SoCal CTO

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Equity for Early Employees in Early Stage Startups

SoCal CTO

If the company's valuation is $2 million, $90k is 4.5%. Of course, to be able to use this kind of formula, you will need to be able to determine how much impact the person will have and figure out a valuation. I've talked about this topic before in How Investors Think About Valuation of Pre-Revenue Startups.

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How Investors Think About Valuation of Pre-Revenue Startups

SoCal CTO

Because of this, I've always tried to stay up-to-speed on how early-stage investors look at valuation of companies. Bill Payne is an expert on how early-stage investors should look at valuation. He just post: Establishing the Pre-money Valuation of Pre-revenue Startups. What are they really looking for? is a requirement.

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CTO Equity - Negotiation After Funding

SoCal CTO

During all this time, valuation pitched to the investors was in the $1M – $3M range. When finally, I sat down and started talking, they basically tallied up the hours I spent and gave a choice to get equity at current $3 mil valuation or get full cash for my time or blend of both cash/equity.

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CTO Equity - Negotiation After Funding

SoCal CTO

During all this time, valuation pitched to the investors was in the $1M – $3M range. When finally, I sat down and started talking, they basically tallied up the hours I spent and gave a choice to get equity at current $3 mil valuation or get full cash for my time or blend of both cash/equity.

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Top 29 Startup Posts May 2010

SoCal CTO

Valuation is an important aspect of VC deal terms, and a major determinant of your ultimate outcome.

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Angel Investment Criteria

SoCal CTO

By way of background for the question, there’s a great post by Bob Aholt, a Pasadena Angel: An Angel Investor’s Thoughts on Valuation. The largest number of exit transactions today are in the under $30-million valuation range. For example, Frank had Basil Peters, author of Early Exits , on his show back in March.

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Entreprenuer Questions

SoCal CTO

and how much is enough to build solid traction to drive the right valuation to go for large money? The primary question we ask is: What's Keeping You Up at Night Chris provided a list of common issues: How much is enough? - how much 'traction' is enough for investors? Who should I get involved?