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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

Email readers, continue here…] Take a situation where the VC investors finally see the chance of a return after ten years, with participating preferred and fifty percent of the ownership after several rounds. And that reputation will last for a long time in the entrepreneurial community.

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Want to Raise Venture Capital More Easily? Clean Up Your Own Shite First

Both Sides of the Table

Once you cross the threshold where their percentage ownership would be worth more than the value of their preference they “convert&# their preferred stock into common stock and take their proceeds pari passu (along side and on the same terms as you) with the common stock holder. Reputation. So what happens? Brain damage.

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

Berkonomics

Take a situation where the VC investors finally see the chance of a return after ten years, with participating preferred and fifty percent of the ownership after several rounds. And that reputation will last for a long time in the entrepreneurial community.

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How to Raise a Seed Round: Three Basic Tips for Founders

Scott Edward Walker

From a practical perspective, this means getting actively involved in your local tech community, regularly attending industry events and conferences, writing blog posts/articles, integrating yourself into communities on social networks and, of course, doing outstanding work as an employee (to develop a great reputation).

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9 Things to Know About Influencing Purchasing Decisions

ConversionXL

Product quality and seller reputation matter , goes without saying. The researchers informed half of the participants that natural chickens were healthy but less tasty, and genetically engineered chickens were tasty, but less healthy. Product quality and seller reputation matter, goes without saying. read more

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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. Researchers informed half the participants that natural chickens were healthy (but less tasty) and genetically engineered chickens were tasty (but less healthy).

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