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

Both Sides of the Table

Other founders, “as a privately held company we don’t disclose our valuation.&# Me, “dude, I’m not a journalist. I just want to figure out what a fair valuation is.&# I figured all the VC’s talked so we should. This starts with understanding how VCs and entrepreneurs often see valuation differently.

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5 Tips for Raising a Venture Round

ReadWriteStart

As Mark Suster pointed out yesterday on his blog , he's seeing more and more cases where "entrepreneurs are working hard to make sure they have as many VC names and famous angels on their cap table for signaling value." Next if you are going to raise a round, find one or two partners to do it with. Tip 5: Remember Time Kills Deals.

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Using warrants to pump up your VC valuation

www.mattbartus.com

How to pump up your VC valuation. Let’s say you receive a term sheet for a $1 million investment at a $3 million fully diluted pre-money valuation, and you’re kind of disappointed. You have a 20% option pool, so you know this will take your ownership down from 80% to 60%, and the VC will get 25%. Option Pool.

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5 Tips for Raising a Venture Round

www.readwriteweb.com

As Mark Suster pointed out yesterday on his blog , he's seeing more and more cases where "entrepreneurs are working hard to make sure they have as many VC names and famous angels on their cap table for signaling value." Next, if you are going to raise a round, find one or two partners to do it with. Tip 5: Remember Time Kills Deals.

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Cap Table Clean Up

ithacaVC

The share price is calculated by taking the pre-money valuation and dividing it by the number of shares outstanding pre-money. So Share Price (SP) = Pre-Money Valuation (PMV) / Shares Outstanding (SO). On a fully diluted pre-money basis, that would mean the option pool represents 14.5% (356,758/2,456,758) of the cap table.

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How to Evaluate an Offer from a Startup Incubator

The Startup Lawyer

The following are some issues to consider and actions to take before accepting an incubator’s offer: (1) Calculate Valuation and Determine Value. Pre-money valuations startups receive from incubators are typically low…really low. The “revised for the cash investment only&# pre-money valuation is $600,000. (2)

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Why I left Wall Street to figure it out.

Austin Startup

I thought of a name and settled on Kilimanjaro, after the highest mountain in Africa. “At a minimum, I should be able to use this myself,” I thought. The screens were coming together and the color scheme I was using (using the primary African colors of Yellow, Green, and Red) was not bad.