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Working for Equity Instead of Cash

genylabs.typepad.com

Tracking and Forecasting the Trends Impacting the Future of Small Business. where your stock sits in the liquidity preference stack. what rights and preferences the founders and the other investors have. Posted by: Atlanta Search Engine Optimization | April 16, 2008 at 07:38 AM. Lessons from a Failed Forecast.

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

Tim Keane

  In a bottom up approach, the forecast is built from actual user projections.   At the financial level , and assuming a harvest of the investment in the company without the need for further financing, two terms stand out as driving economics: the dividend and the liquidation preference.   First , dividends.

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What Most People Don’t Understand About How Startup Companies are Valued

Both Sides of the Table

Valuing any company can be difficult because it requires a degree of forecasting future growth & competition and ultimately the profits of the organization. Or down rounds might favor earlier-stage investors because the liquidation preferences of later stage investors get reduced.

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