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The Resource Center has all the info you'll need From content to user feedback, the resource center has the information you need for every level of the entrepreneurial process.
Thinking about venture funding for your growing business? A VC lays out the steps and provides typical expectations on valuation.
Valuation negotiations between entrepreneurs and investors are often contentious. Such valuations rarely stray from the $1 million to $3 million range for seed/startup companies that angels expect to grow to $50 million to $100 million over five to eight years. Angels are most concerned about the management team's ability to rapidly grow the company and about helping the entrepreneur achieve these growth objectives.
As details regarding executive pay packages become more and more public, the best leaders are opting to make career choices that keep them out of the spotlight. This entrepreneur offers creative tips for finding and compensating the best executives in today's global marketplace.
The NVCA site provides eight legal-document templates as starting points to save significant amounts of time and money during VC deals. For example, it includes term sheet, stock purchase agreement, and management rights letter.
Have venture capitalists overlooked innovation in industries such as nanotech, biotech, medical devices, and semiconductors? A new generation of entrepreneur-innovators is succeeding in such arenas-with promises of more to come. VCs are beginning to take notice. The article offers an overview of industries and products with explanations by entrepreneurs.
Numerous factors affect how angels value a company. Primary are the strength of the management team and the size of the opportunity, or a company's potential to scale. Accompanying this article is a valuation worksheet that entrepreneurs can use to better understand what investors look for and to identify factors that can justify higher pre-money valuations. Investors will find it useful to compare companies and determine whether valuation should be higher or lower.
Investing in seed and startup companies is extremely risky: Angel investors typically realize about 85 percent of their total portfolio returns from 15 percent of their portfolio companies. Consequently, angels look only for companies that can grow rapidly. Entrepreneurs who pursue less aggressive growth are unlikely to attract angel investors.
An important voice in the angel investing world, Luis Villalobos has contributed a practical new term--"valuation divergence"--that focuses on a little understood fact of angel investing: Returns on investments in a company do not increase in direct proportion to the company's market valuation. Entrepreneurs and investors alike will benefit from a better understanding of this concept.
A highly successful angel investor and entrepreneur identifies and puts to the test a valuation calculator tool. He finds that it works very well, thank you. By answering twenty-five questions, entrepreneurs and investors arrive at valuations that can reasonably be used as a practical guide to investing.
This informative piece explains a well-known method that venture capitalists use to determine "post-money valuation," which is a company's valuation at the time of investment. Perhaps more important, it provides valuable insights into why the returns expected by investors are often perceived as "too high" by entrepreneurs.
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