Valuation is not just about numbers, but about understanding the biases, uncertainties, and complexities that can impact the valuation. It is important to recognize and address these factors in order to make more accurate valuations.
The three big p
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Anonymous 2
Hey I am on Medial • 1y
Unfortunately there’s no right way of doing a valuation evaluation for a pre-revenue company. If the valuation is being set with the future being in mind, VCs and founders often get it wrong.
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Venture Capital (VC) term sheets often include clauses that can have significant implications for founders and the future of their startups. Below are some critical clauses that founders should carefully evaluate:
1. Valuation and Equity
Pre-Money
VCs are backbone of startups. How much do you know them?
Here are my few insights:
1. VCs invest funds raised from Limited Partners, and accountable to generate them returns in 10 years
2. VCs earn 2% management fee annually from the fund, perform
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Founders: Protect your equity.
VCs have a playbook for valuation that most founders don’t see.
Here's a side-by-side look at how they calculate deals differently from you:
𝐕𝐚𝐥𝐮𝐚𝐭𝐢𝐨𝐧 𝐂𝐚𝐥𝐜𝐮𝐥𝐚𝐭𝐢𝐨𝐧
Founder: $3M pre-money → $4M po
Always know what you’re looking for when going to an investor for your fundraise. While negotiations are inevitable. We need the founders to be aware of what their company is worth, if you come to pitch with no clear ask in mind that’s usually a red
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Founders.
I can find AI tools for a lot of stuff.
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How Silicon Valley Companies Thinks?
What Matters 'Profits' or 'Valuations'........🤔
let me tell you a secret.
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