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The Berkus Method: Valuing an Early-Stage Investment

Berkonomics

For those of us who’ve invested in early-stage companies, especially technology startups, we have confronted a universal problem. There are many ways to project the value of a company for purposes of pricing an investment, but all rely upon the revenue and profit projections of the entrepreneur as a starting point.

Invest 306
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Finding “stinky clauses” in legal investment documents

Berkonomics

Here’s the problem: Investors sometimes join into investment rounds that have been pre–negotiated by others, receiving the paperwork already created by attorneys from that negotiation. How do you confront the investors who have already agreed to terms and even perhaps signed their documents? Passively sign and hope for the best?

Invest 156
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The Berkus Method: Valuing an Early Stage Investment.

Berkonomics

For those of us who’ve invested in early stage companies, especially technology startups, we have confronted a universal problem. There are many ways to project the value of a company for purposes of pricing an investment, but all rely upon the revenue and profit projections of the entrepreneur as a starting point.

Invest 321
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Several more real costs of taking outsider investments.

Berkonomics

The investor organization is granted the seat as long as the investment remains, and the documents often name the first representative assigned by the investor group to the position. Almost always, professional investors, including angel groups and venture capitalists, also require at least one seat on the corporate board.

Invest 243
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The “Hold Your Nose” theory of legal documentation

Berkonomics

Investors sometimes join into investment rounds that have been pre-negotiated by others, receiving the paperwork already created by attorneys from that negotiation. Changing the deal that late in the game is nearly impossible, after other investors have already completed their documents and the deal supposedly put to bed.

Email 166
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Docupace Gets Majority Investment

socalTECH

The new investment gives RCS Capital a majority stake in Docupace. Docupace develops electronic document management software for managing the operations of broker-dealers. RCS Capital (RCAP) is a retail investment firm. Financial details of the deal were not disclosed. READ MORE>>.

Invest 147
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GoDocs Finds Funding For Legal Document Prep

socalTECH

Irvine-based GoDocs, a developer of legal document preparation software, said today that it has raised round of investment from private equity investor M33 Growth, and appointed a new CEO. Size of the investment round was not announced. According to the company, it has appointed Steve Butler as CEO of the company.

Funding 113