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When Should Startup Founders Discuss Valuation with Seed VCs?

View from Seed

They’ll therefore systematically seek to invest in startups at the lowest cost-basis possible. As a funding conversation progresses from initial to subsequent meetings, the topics of round structure and pricing become much more natural.

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5 Risks Of Buying A Business And Profiting Off The Opportunities They Create

YoungUpstarts

The opportunity: Use this as a negotiating point when bargaining for the deal. If the business IS the business owner, then that person needs to be part of the deal. Structure the buy-out to include an employment contract or consulting agreement, as well as an earn-out.

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The Dos And Don’ts Of Selling Your Business

Duct Tape Marketing

07:47): Well, where are they gonna get the rest of the money and what's that gonna cost them? Let's talk about some of the deal structures you've seen. And that's gonna cost me money. So maybe they would have some home equity they could pull out or some savings. What's the debt service gonna be like? 09:23): Sure.

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Flexible VCs With Structures Between Equity and Revenue-Based Investing

David Teten

Versatile has built out a suite of no-cost portfolio acceleration services to help its companies succeed. Purpose Ventures’ deal structures are bespoke to each company. Founders have the discretion to buy out almost all of Versatile VC’s stake by paying an agreed-upon percentage of revenues. Details here.

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Financing Acquisitions: Keys to Structuring the Deal And Obtaining The Funding

YoungUpstarts

To safeguard your team from getting emotionally over-committed to a specific business, carefully balance the price being offered for the target, the strategic problem or opportunity it addresses, the likely near-term cash flow of the target, the integration strategy, the inherent risks and the deal structure.

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10 Tips for Startups Raising Money from Angels

VC Cafe

Are your costs per acquisition going up or down with scale? Deal structure – I could write a full post just on this, but some aspects that were brought up are the need to agree on a reasonable valuation, what investment vehicles are used (convertible debt vs stock, options and warrants and other non-dilutive mechanisms).

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Signaling Pricing Expectations Early in Seed Investment Discussions

Genuine VC

This handful of people is extremely and unabashedly cheap, as they’re fully self-aware of their role within the funding ecosystem and are accordingly systematically seeking to invest in startups at the lowest cost-basis possible.

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