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Want to Know How VC’s Calculate Valuation Differently from Founders?

Both Sides of the Table

And for some strange reason entrepreneurs didn’t share this information. I’ve started from day one trying to build total transparency into my process with entrepreneurs. This starts with understanding how VCs and entrepreneurs often see valuation differently. No option pool shuffle. No gotchas.

Valuation 405
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What to expect before accepting the offer to become Engineer #1 at a startup

The Next Web

They were referring to non-founder engineers, most commonly the first hire for technology businesses. Startup employees are granted common shares out of something called an option pool. Every time a startup raises capital, all common shareholders are diluted. Entrepreneur Insider Analysis and Opinion How-To''s'

Engineer 129
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How to Divide Equity to Startup Founders, Advisors, and Employees

thinkspace.com

Chris Dixon wrote a blog post about “ The one number you should know about your equity grant “ The one number you should know about your equity grant is the percent of the company you are being granted (in options, shares, whatever – it doesn’t matter – just the % matters). Strike price of options: meaningless.

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