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Revisiting Paul Graham’s “High Resolution” Financing

Both Sides of the Table

Either would be fine with startups, so long as they can easily change their valuation. When I was raising money in late 1999 I had an investment team in Germany (I was in the UK) suggest that they should get a lower valuation than others because they were ex McKinsey guys and had better access to industry. I chuckled.

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On Human Capital & Venture Capital

thebarefootvc

This is also what I advise entrepreneurs when discussing dilution and valuation — think of the bigger picture and the end game of what you are looking to build — and who will help you get there. In early days, the network effect of employees, advisors, investors is key to gaining market traction and scale:

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7 Reasons To Reconsider A Planned IPO Exit Strategy

Startup Professionals Musings

According to Investor's Business Daily , even though IPOs in 2018 through July were up nearly 39 percent from last year, the total of 115 companies so far is still nowhere near the rate required to match the yearly total of 486 hit way back in 1999. Most startup founders voluntarily exit or are pushed out, and the fun is gone.

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How to Discuss Stock Options with Your Team

Both Sides of the Table

I freely admit this (along with nearly everything between 1999-2000) was a mistake. We set our sites on our IPO price and then worked back to our current valuation and showed potential employees what we thought they could earn (with all legal caveats) if the company was successful. rounds and still be competitive.

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409A Valuations

Venture Chronicles

Don Dodge wrote about a very dry but critically important issue facing private companies that issue equity to employees… 409A valuations : IPO bump? – If private investors have already bid up the valuation, will there be an IPO jump in the stock price? It is called the 409A Valuation requirement from the IRS.

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Facebook and Instagram

The Equity Kicker

Instagram is an incredibly well run company – there are numerous small pieces of evidence for this, but my favourite is that they got to 4m users with only 4 employees. I think that is the difference between 1999 and today. 1bn values Instagram at $33 per user, which compares with $118 on Facebook (assuming a $100bn IPO).

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Should You Share Equity with Consultants?

www.inc.com

Employee Benefits. Back in 1997, Randy Parker was staring at a blank whiteboard, wondering where hed find the money to hire the employees and consultants he needed to build his new product. "We a 50-employee provider of e-marketing solutions to small and midsize businesses, based in Needham, Mass. "We Business Taxes.