Remove Blogging Remove Demand Remove Pricing Remove Writing
article thumbnail

The Authoritative Guide to Prorata Rights

Both Sides of the Table

For starters some funds are small and thus while they put $750k into your company to own 10% of your company they might not be able to write another $2 million if you then raise a $20 million round (10%). New investors sometimes want early investors to put in money to “prove” they have confidence in the new price.

Guide 336
article thumbnail

Why Acceptance of Failure is Critical to Startup Success

Both Sides of the Table

You also ran the risk that if you hired employees quickly and then demand wasn’t as strong as expected it was incredibility hard to fire people. I find it distracting that when you click on a link you’re taken away from the main blog and need to hit the back button to remember to finish the article.

Startup 261
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Venture Capital Q&A Session

Both Sides of the Table

on the entrepreneur side of the table) when I raised at too high of a price. So don’t raise money at a cheap price, but don’t get too far ahead of yourself either. Pricing high also takes exit options off the table. But if you do this early (pre VC) then the price points are pretty low. This is wrong.

article thumbnail

Why Super Pro-rata Rights are Not a Good Deal for Entrepreneurs

Both Sides of the Table

Yesterday I saw a Tweet from Chris Sacca fly by that prompted me to want to write a blog post helping entrepreneurs understand why they should push back against VCs asking for “super pro-rata” rights. They might own 8% of your company after the first funding but demand up to 33-50% of your next round of financing.

article thumbnail

8 Strategies For Winning As A Freelancer Or Employee

Startup Professionals Musings

In essence, as a contractor, you are a consultant who is competing regularly for new work, and you constantly have to differentiate your offering from other candidates, including price. Use blogging, outside publication, and speaking or mentoring opportunities to establish credibility and stand out above peers.

Startup 98
article thumbnail

6 Steps To Move From Inspiration To Business Reality

Startup Professionals Musings

I suggest you use social media, blogging, crowdfunding, or documented research to quantify a real demand from people who can afford it, and don’t have a better alternative already out there. Writing down key parameters will force you solidify the specifics, and mentally commit to them.

Ideas 94
article thumbnail

Want to Know How VC’s Calculate Valuation Differently from Founders?

Both Sides of the Table

I’m not sure I really even need to write this at length because Nivi absolutely nailed the topic in his article “ The Option Pool Shuffle.&#. The price / share is actually $2.40 (not $3.00), which is $3,000,000 pre-money / 1,250,000 shares (because you had to create the 250,000 share options).