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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.

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VC investors: Don’t be greedy even if you can.

Berkonomics

First, the marginal exit event: Sometimes the end game or sale of the company is not a happy event for the early investors, including the entrepreneur or the founders. Most sophisticated investors will take either a promissory note or preferred stock, both of which come before founder or management stock in a sale or liquidation.

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9 Things to Know About Influencing Purchasing Decisions

ConversionXL

Product quality and seller reputation matter , goes without saying. Don’t delete negative reviews - they actually help sales if there are only a few of them. The researchers informed half of the participants that natural chickens were healthy but less tasty, and genetically engineered chickens were tasty, but less healthy.

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Angels and VCs: Don’t be greedy even if you can.

Berkonomics

Sometimes the end game or sale of the company is not a happy event for the early investors, including the entrepreneur or the founders. Most sophisticated investors will take either a promissory note or preferred stock, both of which come before founder or management stock in a sale or liquidation.

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Purchase Decisions: 9 Things to Know About Influencing Customers

ConversionXL

Product quality and seller reputation matter , of course. More reviews can help insulate your reputation from the inevitable impossible-to-please customer. They actually help sales if there are only a few of them and they’re politely worded. People research products. They compare competitors.

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