article thumbnail

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

Both Sides of the Table

Back in 1999 when I first raised venture capital I had zero knowledge of what a fair term sheet looked like or how to value my company. I’m not sure I really even need to write this at length because Nivi absolutely nailed the topic in his article “ The Option Pool Shuffle.&#. No option pool shuffle.

Valuation 405
article thumbnail

Entrepreneurs: Your instincts are always better than bad advice

The Next Web

In many cases we have observed, the founders have given away too much equity to their first investors — typically angels and family offices, who have little experience with fast-growing startups or the venture capital funding model.

Cap Table 128
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Should You Share Equity with Consultants?

www.inc.com

For example, Morse notes that neither C corporations nor venture capital funds structured as partnerships can, by law, be S corporation shareholders. If youre offering the consultant stock options, youll also want to take into consideration what the exercise price is going to be and how long the options will be outstanding.

article thumbnail

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

Tim Keane

  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.] and walked through each proposed term and why it is or isn’t important.

article thumbnail

VCs eating our own dog food: Using technology and analytics to make better investments

David Teten

Private equity and venture capital investors are copying our sisters in the hedge fund world: we’re trying to automate more of our job. . Fund/SPV management services specifically are provided by Assure Services and Proteus Capital. ff Venture Capital hired two full-time engineers to build out Totem.

article thumbnail

Changing Equity Structures for Early Startup Employees

www.instigatorblog.com

You can’t have an option pool that takes up 50% of the company’s shares, and you have to leave room for future employees as well. turtlebarbeque I always believed the equity distribution is primarily based on the worth of the contribution. Thank you and great post bud. Thank you and great post bud.

Equity 41