Hunter Walker

AUGUST 7, 2017

While you should expect these sorts of hires to take below market cash comp versus what Google is paying them, this tradeoff needs to be replaced with equity upside. Since Homebrew typically leads/co-leads seed rounds, we assist in helping founders design and manage their pool against their hiring forecast.

Equity 94

Equity Pre-Money Valuation Option Pool Founder 94

YoungUpstarts

SEPTEMBER 15, 2018

The pre-money valuation of other startups is based on the following factors. However, you may have more liquid assets because of which you think that your valuation should be more than what your investors have actually spelt out. The financial forecasts will end up playing a big role here as well.

Pre-Money Valuation 124

Pre-Money Valuation Valuation Sweat Equity Startup 124

Tim Keane

JANUARY 12, 2010

The investors and the entrepreneurs are – or should be – aware that the price of the company’s equity is set by the market – in simplest terms, what an informed buyer is willing to pay.   You can vary both valuation and term-sheet assumptions (in the gray boxes) to assess the impact on the values of the business.

Term Sheet 68

Term Sheet Valuation Dividend Liquidation Preference 68

VC Cafe

SEPTEMBER 26, 2022

For more about forecasting growth in these uncertain times, check out Sequoia’s “ Adapting to Endure ” presentations published in May 2022. ValuatIon should be a function of value, not ego. Kawasaki’s Law of Pre-Money Valuation: for every full-time engineer, add $500,000; for every full-time M.B.A.,

Founder 187

Founder Startup Valuation Pre-Money Valuation 187

David Teten

NOVEMBER 15, 2013

The average equity fund investor earned a market return of only 4.25%. I have frequently heard the expression from other investors, “We can put a lot of money to work here.” By spending more money, investors can justify managing more money, which in turn increases their fees.

Management 114

Management Pre-Money Valuation Venture Capital New Hampshire 114

www.currentlyobsessed.com

MAY 28, 2010

Instead of “We are worth about $5m because we have done XYZ and we need to raise $1m, so let’s sell 20%&# it’s better to think about valuation as an output variable, like “Let’s raise $2mm and sell 33%, our (pre-money) valuation is therefore $4mm.&# Future value is key.

Valuation 42

Valuation Channel Pre-Money Valuation Term Sheet 42