Both Sides of the Table

JUNE 30, 2016

conversation literally every week with startups. It is a truism that with more capital you will hire people more quickly and spend more liberally whether it’s on external contractors, PR firms, attending events, doing legal work (trademarks, patents) or whatever. It forces harder decisions about whom you’ll hire and whom you’ll delay.

Pre-Money Valuation 292

Pre-Money Valuation Valuation Early Stage Startup 292

YoungUpstarts

SEPTEMBER 4, 2017

For startup founders and CEO’s it’s also just as common to see them place too much focus on the amount of money raised, and the pre-money valuation, rather than the value that each investor can bring to the table. Creating a reputation as an investor who truly backs their founders can often make you an investor of choice.

Pre-Money Valuation 187

Pre-Money Valuation Seed Stage IP Deal Flow 187

Both Sides of the Table

SEPTEMBER 5, 2012

As in, “your money into my company will convert at a 15-20% discount to the next round of capital I raise with a maximum price of $8 million pre-money valuation (or whatever the cap was).” I recommend that startups agree the “conversion price” at maturity. What happens at maturity?

Ratchet 354

Ratchet Liquidation Preference Equity Stock 354