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What Entrepreneurs Should do about Price Fixing

Both Sides of the Table

I thought I’d try to look at it from a different lens, that of the entrepreneur. As an entrepreneur you should assume that. So what is an entrepreneur to do? I sometimes ask entrepreneurs. We discuss deal structures. But I do the same thing with entrepreneurs and I do it publicly on This Week in VC.

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When Should Startup Founders Discuss Valuation with Seed VCs?

View from Seed

In short, more and more entrepreneurs are signaling their price expectations earlier in their seed fundraise process. In theory, there are three levels of pricing for an entrepreneur to potentially signal to a prospective investor: 1. But, also by definition, that just can’t be the case. Lower-Than-Market Value.

Valuation 336
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Both sides must be fair in a term sheet negotiation.

Berkonomics

These usually involve a handful of angel investors, and a few entrepreneurs, who all want to build the very best term sheet for their exciting nascent enterprise. As an example, twenty five years ago, most VCs used common share deal structures. It was not until the later 1980s that the preferred share structure became popular.

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Signaling Pricing Expectations Early in Seed Investment Discussions

Genuine VC

In theory, there are three levels of pricing for an entrepreneur to potentially signal to a prospective investor: Lower than “market.” This approach is almost never a good idea. By definition, all entrepreneurs should think that their endeavor is truly exceptional. But, also by definition, that just can’t be the case.

Valuation 136
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Knowing When It’s Time To Sell Your Startup

YoungUpstarts

Others are building their companies with the definitive intention of selling them. However, for many successful entrepreneurs, weighing all of the personal and financial issues that go into this decision can be gut-wrenching. Each one can provide valuable lessons to the entrepreneur. This begs the question. Unprofitable.

IPO 162
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Knowledge Is Power: Convertible Note Financing Terms, Part II

Gust

A term sheet keeps things relatively straightforward by summarizing the most significant deal terms in outline form, whereas the deal documents themselves (often referred to as definitive agreements ) — even for a relatively simple convertible debt financing — inevitably contain some densely written legalese.

Finance 79
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Who Invests In Investors: Homebrew LP Shares VC Performance Goals, Importance of Diversity & What They Look For In New Funds

Hunter Walker

Oh and Anne is DEFINITELY still interested in venture as part of Hamilton’s investment strategy. We triangulate with investors, entrepreneurs and large company operators to assess probability of success and ability to attract in-demand entrepreneurs. If you have the opportunity to work with her, I highly recommend it.

LP 48