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

Both Sides of the Table

Things like “ participating preferred stock &# in legalese unsurprisingly never actually call out, “hey, this is the participating preferred language.&# We got a3x participating liquidation preference with interest (not participating with a 3x cap, but 3x participating.

Valuation 405
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Shark Tank Season 4 week 4 breakdown

Lightspeed Venture Partners

Week three’s breakdown covered topics like how hard momentum is to turn around, and how participating preferred stock works. The first company started as a BBQ catering business, and eventually focused in on their most popular product, a dip made of blended up chicken plus various sauces. BACK 9 DIPS.

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9 Things to Know About Influencing Purchasing Decisions

ConversionXL

Product quality and seller reputation matter , goes without saying. What about when the product matches the customer’s needs and wants, and they trust the seller? If you sell commodity products, you might want to look into pulling reviews from an external site to have more of them. The same goes for products and purchases.

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Positioning Your Brand in the Covid Era

ReadWriteStart

On the other hand, during the pandemic, many consumers have tried new ways of shopping , be that shopping online rather than in stores, or simply trying new brands and companies for both products and services. Men were found to have little to no preference in siding with trusted brand names compared to those that are innovative.

eCommerce 176
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Two investment deals are on the table. Which do you sign?

The Startup Toolkit

Next, we check that we’re safe from any particularly onerous terms like participation preferred. 90% investor product vision. The latter means products, analytics, optimisations, and developers. What’s the dilution? Can I make those numbers bigger and smaller, respectively? Looks good.

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Shark Tank Season 4 episode 3 breakdown

Lightspeed Venture Partners

The entrepreneur claimed that her patent was weak and as a result competitors had copied her product and were collectively doing $30-40M in sales. The company has sold $330k of product over the last two years, all online, mostly to ballroom dancers, where the product has developed a niche following. Last year it did $3.9M

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Sustainable startup growth and venture capital

The Equity Kicker

That means much less blitzscaling (whatever the heck that ever was), and lots more heads-down quality thinking to build products that customers actually want and will eventually pay for. I would summarise that as getting the fundamentals right – from great product, through unit economics to stakeholder alignment.