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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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5 Principles of Persuasive Web Design

ConversionXL

You really need to understand how your product or service fits in the lives of your customers. Product pages, about pages and so on. A negative first impression will be a drag and affect the whole perception about your products and services. Most ecommerce product pages are very different from this. Product photos.

Web 134
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How to Divide Equity to Startup Founders, Advisors, and Employees

thinkspace.com

David Crow writes in his article “ Founders versus Early Employees “, “Remember the goal is to incent early employees to have an emotional ownership of the product and company they are building. After all, I essentially created the product. It’s important to figure out how much equity you give to your employees.

Equity 62
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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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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.