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Why Entrepreneurs Should Be Generous With Investors

YoungUpstarts

As well as how to work with pre and post-money valuations. Generous is not a word often associated with talking about negotiations between startup entrepreneurs and their investors. It’s often more all about fearing how tough VCs are going to be with their term sheets and ‘standard’ clauses. Generosity is nowhere on their radar.

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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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Make Price the Last Thing

David Cohen

Entrepreneurs will name the pre-money or post-money valuation, and sometimes they even lead with the pricing. It turns out you’ve heard of this artist, a much-admired woman in the local community. She recently passed away, and this was one of the last pieces of jewelry she ever made.

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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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90 Things I've Learned From Founding 4 Technology Companies

betashop.com

Before there was Fab there was fabulis, a social network meets places guide targeted to the gay community. That means if you’re taking money with a $5M post-money valuation, the expectation is that you are building for a minimum $50M exit. $10M 10M post-money valuation = $100M target.

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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.