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

Tim Keane

The investors and the entrepreneurs are – or should be – aware that the price of the company’s equity is set by the market – in simplest terms, what an informed buyer is willing to pay.   As a starting point, these become market comparable discussions based on other similar transactions within a recent timeframe and similar business.

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In Q4 2022, founders face tough choices

VC Cafe

Mature startups with proven business models and the potential to reach the public markets within a few years will be the safest place to park any new venture capital that comes into the ecosystem. That means that investors are contractually demanding to get 2-5x their investment, before other share classes get paid.

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