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Working for Equity Instead of Cash

genylabs.typepad.com

Tracking and Forecasting the Trends Impacting the Future of Small Business. Small Business Blogs. Entrepreneur Magazine Blog. The Franchise King Blog. The Global Small Business Blog. Blog powered by TypePad. « Lawyers and CPAs Blogging | Main. BizTech Magazine: 50 Must-Read IT Blogs.

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Term-sheets and Valuations: Thinking about Negotiations - Startups.

Tim Keane

  In a bottom up approach, the forecast is built from actual user projections.   At the financial level , and assuming a harvest of the investment in the company without the need for further financing, two terms stand out as driving economics: the dividend and the liquidation preference.   First , dividends.

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Accepting Outside Investors? Here Are 5 Things to Watch Out for in Your Contract

Up and Running

They generally also get additional rights that common shareholders don’t get, such as anti-dilution protection, and liquidation preference (discussed further below). Liquidation preference. Whether that’s true or not depends in no small part on how the liquidation preference clause was negotiated with outside investors.

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What Most People Don’t Understand About How Startup Companies are Valued

Both Sides of the Table

Valuing any company can be difficult because it requires a degree of forecasting future growth & competition and ultimately the profits of the organization. When I started blogging it was because I was inspired by Brad Feld. Brad was openly writing about this and it felt like he was giving the VC playbook away for free!

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