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

Tim Keane

For angel groups, the distinction between groups and VCs on this issue is dwindling, especially as angel groups do bigger rounds of financing.   You can vary both valuation and term-sheet assumptions (in the gray boxes) to assess the impact on the values of the business. Second a liquidation preference and a participation.

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Should Entrepreneurs Attend Business School?

Up and Running

Additionally, I had already studied Economics and Finance during undergrad, making the academic part of an MBA seem a little redundant. Is business school really necessary? C Corp versus LLC, non-competes, liquidation preferences, preferred versus common stock, and so on).

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Some lessons on startup financing from Tren Griffin and Nassim Taleb

The Equity Kicker

Nassim Taleb is one of the most visionary thinkers in modern finance. His books Black Swan and Fooled by Randomness are must reads for anyone in the investment business. Avoid[ A rigid business plan gets one locked into a preset invariant policy, like a highway without exits —hence devoid of optionality.”.

Finance 129
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How much equity for investors and employees?

dondodge.typepad.com

It isnt always possible to have a competitive bidding situation at each financing round so here are some guidelines for funding sources and percentages. Friends & Family can usually raise between $30K and $300K and usually take an interest bearing note that is convertible into stock at the next financing. 5% Managers -.25%

Equity 40