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

Tim Keane

Term-sheets and Valuations: Thinking about Negotiations.   I’ve sat down with entrepreneurs and a copy of a term sheet guide I like [ “Term Sheets & Valuations - A Line by Line Look at the Intricacies of Venture Capital Term Sheets & Valuations ” by Alex Wilmerding, Aspatore Press.] The Valuation Question.

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Unintended Consequences: When SAFE and Convertible Notes Go Awry

Pascal's View

This is a fundamental issue that does, indeed, boil down to understanding the post-money valuation of a company. At its core, this issue points to the lack of understanding about the importance of post-money valuation by both entrepreneurs and investors. But it is also a topic that many find esoteric and difficult to grasp.

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Cliff Notes S-1: Kayak ? AGILEVC

Agile VC

At the end of the day Kayak’s playing a key role in the online travel process, but it appears more of the revenue comes from filling top of the conversion funnel rather than the middle or bottom of it. Post-money valuation probably no higher than $12M (2). Pre-money valuation was approx. Pre-money valuation was approx.

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What is it Like to Negotiate a VC Round?

Both Sides of the Table

I am reminded of this problem every time my firm does a financing where a note went before us but more specifically I was reminded by this great post by Brad Feld to talk about the pre-money vs. post-money conversion issue. In the old days VCs funded off of a “pre-money” valuation. How much is in the option pool?

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Founders Should Set Aside More Equity for Their Team & “Split the Pain” With Investors

Hunter Walker

But employee option pool is important enough that I wanted to briefly expand upon my comment above. What if we split the pain [ie increase pre-money valuation slightly on our end and founders take slightly more dilution off their end]?” As you can see, Weekend VC Twitter gets pretty wild and crazy!!!!

Equity 94
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Building Convertible Debt into the Premoney Valuation

ithacaVC

One interesting point that comes up a lot is how to factor the convertible debt into the premoney valuation of the Series A round. Option pool: 500,000 shares (some issued, some reserved, but that is typically irrelevant as the whole pool is normally factored into the premoney share price calculation).

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Why I left Wall Street to figure it out.

Austin Startup

So one day in conversation with family, I decided to just share a full version of the idea with family, pitch deck and all, and that led to our kick-start amount of $25,000. was originally published in Austin Startups on Medium, where people are continuing the conversation by highlighting and responding to this story. We just have to.