Remove Option Pool Remove Startup Remove Term Sheet Remove Valuation
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. Due to competitive markets we ended up with a pretty good term sheet until we needed to raise money in April 2001 and then we got completely screwed.

Valuation 405
article thumbnail

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

Tim Keane

Startups and angels: Along the way to success. Term-sheets and Valuations: Thinking about Negotiations. Please see later version of this post on May 16, 2010 Entrepreneurs are often not experts in the area of term-sheet negotiations and all of the surrounding issues. The Valuation Question.

Insiders

Sign Up for our Newsletter

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

article thumbnail

Venture Deals 4e German Edition

Feld Thoughts

KG companies have decisive tax disadvantages for startups and are, therefore, rarely used in this area. Since the attractiveness of investments is also largely related to exit channels, this aspect affects the availability of capital and company valuation at every stage. BAND) and the Bundesverband Deutsche Startups e.V.

Germany 165
article thumbnail

5 Tips for Raising a Venture Round

ReadWriteStart

While certainly not every business needs to raise venture financing, it is the path for many high-growth technology startups. As Steve Blank explained earlier this week on ReadWriteStart from research at The Startup Genome Project : One of the biggest surprises is that success isn't about size of team or funding.

Cap Table 125
article thumbnail

Term Sheet Purgatory

The Startup Lawyer

There’s a lot of advice about (1) how to attract VCs, and (2) how to negotiate a venture capital term sheet. Both sets of advice tend to ignore the gap between an investor’s expression of investment interest and your startup’s receipt of the term sheet.

article thumbnail

The Option Pool Shuffle

venturehacks.com

Venture Hacks Good advice for startups. SUPPORTED BY Products Archives @venturehacks Books AngelList About RSS The Option Pool Shuffle by Nivi on April 10th, 2007 “Follow the money card!&# – The Inside Man, Three-Card Shuffle Summary: Don’t let your investors determine the size of the option pool for you.

article thumbnail

What is it Like to Negotiate a VC Round?

Both Sides of the Table

Over the years I’ve written extensively about the downsides of convertible notes for startups such as here , here and here. In the old days VCs funded off of a “pre-money” valuation. How much is in the option pool? I can boil it down to how this tension plays out. Why do investors care about this?