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Bad Notes on Venture Capital

Both Sides of the Table

There were no metrics. Him: On metrics. In finance they call it “terminal value” but the truth is the price is as arbitrary at your A round as it is at your seed round. If we priced it based on any metrics your company would likely be worth less than 7 figures at your A round. Try doing THAT with equity.

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The Changing Venture Landscape

Both Sides of the Table

And as a result of this there are now very robust secondary markets where founders and seed-funds alike are selling down their ownership long before an ultimate exit. Investments in the intersection of data, technology and biology.