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Think ahead when raising your early investments

Berkonomics

Sooner or later you may need to seek venture capital and accommodate the needs of the venture community in negotiating the terms of an investment. First: Is the price paid for shares by previous investors excessive, creating a post-money valuation too high for the actual value of the company? What VC’s can and cannot do.

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Think ahead, if you will need more money later.

Berkonomics

Sooner or later these businesses will have to seek venture capital and accommodate the needs of the venture community in negotiating the terms of an investment. Is the price paid for shares by previous investors excessive, creating a post-money valuation too high for the actual value of the company?

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Shark Tank Season 4 episode 2 breakdown

Lightspeed Venture Partners

post money valuation. Mark Cuban offered $300k for 33% of the company, implying a $900k post money valuation. implying a $600k post money valuation. The company ended up negotiating with Cuban and settled on $300k for 30% of the company, or a $1M post money valuation.