Archive for March, 2011

The Liquidation Preferences Debate

March 16 2011 No Commented

The terms and conditions under which angel investors fund startup entrepreneurs are defined by non-binding term sheets.  Liquidation preferences are a commonly negotiated term and come in several flavors: 1X non-participating liquidation preference – At exit, this preference give investors the option of getting their money back or participating pro rata in the exit with […]

Startup Valuations: Using Several Methods to Determine the Pre-money Valuation of Pre-revenue Companies

March 4 2011 2 Commented

Since the end of January, we have posted explanations of five methods for establishing the pre-money valuation of pre-revenue companies, specifically:                 The Scorecard Method (January 31, 2011)                 The Venture Capital Method (February 5, 2011)                 The Dave Berkus Method (February 14, 2011)                 The Cayenne Valuation Calculator (February 19, 2011), and                 The […]