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Want to Know How VC’s Calculate Valuation Differently from Founders?

Both Sides of the Table

I told them that True Ventures had stuck to their brand name and submitted a totally clean term sheet. The VC’s $1 million still buys them 25% of your company – it’s you who has diluted to 60% ownership rather than 75%. This states how the proceeds from a sale or dissolution of the company will be distributed.

Valuation 405
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What Happens When Startups Turn from Their Innovation Stage to Operational Excellence?

Both Sides of the Table

MakeSpace (as he named it) would help you get your excess goods into low-cost warehouses. We realized that operating a business in distributed markets presented multi-city coordination efforts that we weren’t prepared for. were more distributed.

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How to Raise Investment Capital - According to VC Jeff Clavier

ReadWriteStart

Years later Clavier's name now comes up all the time when one of his portfolio companies finds success; his exits include Mint, Tapulous, and UserPlane, other investments include Mashery (a ReadWriteWeb sponsor), Rapleaf, Fitbit, bitly, GroupOn, Twitter and many more. How to Hack the Investment World. You can also follow Kedrosky on Twitter.

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How to Talk About Valuation When a VC Asks

Both Sides of the Table

Many VCs will have a distribution curve where they’ll do a small number of early-stage deals (say $1.5–3 If a VC prices a flat or down round it means that management teams are often taking too much dilution. Why shouldn’t most founders just name a price? When SHOULD you name a valuation expectation? After all?—?we

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My Favorite Entrepreneur Story in a Long Time

Both Sides of the Table

So I started noticing hot sauces more and the more I looked the more I noticed this funny rooster bottle with a strange sounding name I couldn’t pronounce and that familiar green cap. The company name sounded Chinese – Huy Fong Foods. He can’t trademark it since it’s the name of a city. Where was it from?

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Debt Or Equity To Fund Your Start-up: Which Is Better?

YoungUpstarts

The amount you put toward debt minimizes reinvestment in growth and earnings distributions to owners. Financial Risk Distribution. Aside from paying your bills, you do not have to distribute profit to others. The more equity investment you use to develop the business, the more diluted your personal earning potential becomes.

Equity 176
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How do the sample Series Seed financing documents differ from typical Series A financing documents?

Startup Company Lawyer

If new investors get better rights in a future equity financings (such as registration rights, price-based anti-dilution, redemption rights, etc.), The liquidation preference would not apply in this situation, and any distribution to stockholders would trigger the dividend preference. Anti-dilution protection. Future rights.

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