Both Sides of the Table

SEPTEMBER 23, 2010

At what valuation? We discuss deal structures. Here’s what he said (name withheld but if wants to be public he can put it in the comments and I’ll give him attribution: “To put it really really simply and roughly: 2 separate issues for antitrust claims: (1) abuse of (2) market power. Cap or warrants?

Entrepreneur 292

Entrepreneur Technical Review Stealth Valuation 292

YoungUpstarts

MAY 17, 2019

If the business IS the business owner, then that person needs to be part of the deal. Structure the buy-out to include an employment contract or consulting agreement, as well as an earn-out. Listen to if they mention the business owner’s name more than the business name itself. Risk 3: Running out of cash.

Due Diligence 185

Due Diligence Forecast Deal Structure Valuation 185

YoungUpstarts

MAY 14, 2018

And, namely, they pique the interests of those in the private capital markets. Think of financing an acquisition as an exercise with two parts that work in concert: 1) structuring a desired deal with a suitable target and 2) obtaining the funding. Value the target acquisition as a standalone business first.

Acquisition 124

Acquisition Finance Raleigh Mezzanine 124

Berkonomics

MAY 15, 2014

Just a few of these terms include vesting, corporate structure, governance principles, financing strategy, valuation and exit strategy. 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.

Term Sheet 91

Term Sheet Angel Groups Angel Investor Deal Structure 91

Both Sides of the Table

MAY 13, 2013

If you give $2 million for 20% of a company ($8 million pre + $2 million investment = $10 million post-money valuation) that has no product and no customers and it turns around 3 months later and sells for $5 million it would hardly be fair for investor to get $1 million back (20% of the proceeds). But evidence suggests otherwise.

Liquidation Preference 357

Liquidation Preference Early Stage Retention Lock-up Period 357

VC Cafe

SEPTEMBER 6, 2011

I’ve decided to keep his name off as I didn’t get his explicit permission, but drop me a line if you’d like to get in touch. 10 tips for raising money from business angels. What experience or contacts are they bringing to the table? Are you offering them a board seat or a chairman role?

Startup 133

Startup Cofounder Warrant Stock Options 133

K9 Ventures

OCTOBER 10, 2017

There are a now a handful of funds, K9 included, that are Pre-Seed funds in name and practice. The amount of capital (and therefore the resulting valuation) also sets the stage for the next round of financing for a company. Q: How are most Pre-Seed deals structured? A $42M technology-focused Pre-Seed fund.

Seed Stage 82

Seed Stage Finance Later Stage Equity 82