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3 Economic Rules Every Crypto Start Up Must Obey

Austin Startup

It will revolutionize produce sales globally. Our pre-money valuation for the seed round is 2 trillion dollars.” We see a lot of crypto start-up ideas that go something like this: “We’d like to put bananas on the block chain and trade them with utility tokens. I’ve taken some editorial license here, but you get the idea.

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Shark Tank Season 4 week 10 breakdown

Lightspeed Venture Partners

They talked about a referral program, as well as direct sales. The company did $250,000 in sales last year and is profitable. They had three stages to their plan. The first was to franchise their model, selling a captain a $35,000 boat and a business plan to replicate Corks Away for $175,000.

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

Tim Keane

It also assumes the entire value of the investment is captured for investors at a sale of the company in the time specified in the term-sheet.   On the last line on page two of the workbook, you see the resulting returns to the entrepreneur with a variety of terms and valuations and assumptions. Let’s start at the end.

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Valuations 101: Scorecard Valuation Methodology

Gust

This method compares the target company to typical angel-funded startup ventures and adjusts the average valuation of recently funded companies in the region to establish a pre-money valuation of the target. In most regions, the pre-money valuation does not vary significantly from one business sector to another.

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How to Fund a Startup

www.paulgraham.com

For example, VCs generally write it into the deal thatin any sale, they get their investment back first. Some VCsnow require that in any sale they get 4x their investment backbefore the common stock holders (that is, you) get anything, butthis is an abuse that should be resisted. So theyre going to raise $200,000.

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How to Start a Startup

www.paulgraham.com

The woman in charge of sales was so tenacious that I used to feelsorry for potential customers on the phone with her. Stephen Hawkings editor told him that every equationhe included in his book would cut sales in half. A 10% improvement in ease of use doesnt just increase your sales 10%. Its more likely to double your sales.

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