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Venture Capital Q&A Session

Both Sides of the Table

We received so much positive feedback from our This Week in Venture Capital show walking through valuation calculations & term sheets that we decided to do a Q&A show this week to address topics that entrepreneurs want to learn about. on the entrepreneur side of the table) when I raised at too high of a price. This is wrong.

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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. Back then VentureHacks didn’t exist. No gotchas.

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Common Stock vs. Preferred Stock in Venture Funding Transactions

Growthink Blog

I get the same question a lot from entrepreneurs raising equity capital (venture capital or angel funding). The question is whether they need to issue common or preferred stock. The answer depends on how and what rights are defined in the preferred stock. read more.

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4 Deadly Legal Mistakes That Startups Make

Scott Edward Walker

Introduction This post was originally part of the “ Ask the Attorney ” series I am writing for VentureBeat (one of my favorite websites for entrepreneurs). code, logo, domain name, etc.) Below is a longer, more comprehensive version. I’ve been reading a lot on the web about incorporation and other legal stuff. Vesting Restrictions.

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How do startups decide who sits on the board?

Gust

So before a startup receives outside funding, the board is “elected” by—and usually consists of—the founders (although it may exist in name only.). Invested Interests board of directors business entrepreneur founders startup' A company’s board of directors is technically elected by the company’s shareholders.

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Will Work for Equity - Investing in Clients - Arizona Bay

www.inc.com

Entrepreneur news from reporter Eric Markowitz. Naming a Business. In the 1990s, Graham was one of those entrepreneurs giving away equity in exchange for crucial services. Graham also pushes for common stock, the right to participate in future funding rounds to preserve the size of the stake, and a guaranteed seat on the board.

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3 IPOs and the Lessons They Hold for Today’s Startups

ReadWriteStart

The well-known ridesharing giant hit the market this year with a target price of $45 dollars per share, with 180 million shares of common stock available at launch. In the months since, however, Fiverr’s stock has come down to earth. If the name sounds familiar to you – it should.

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