Financing merger and acquisition activity is much different than funding stand-alone growth with venture capital, as the investors are vastly different.
My General Feelings About Valuation As you know all too well, valuation has many aspects. Investors often talk about the pre-money or post-money valuation of a company at the time they invest. If you get aspects of the percentage of the common stock for your investment, and nothing else, this calculation can be straightforward. But, […]
Valuing a business based on assets and financial performance is a well-understood process, but every investor knows the real value goes well beyond these parameters, either higher or lower. The key elements of leadership in a company, both individual and organizational, are less tangible, but very critical in setting a market value for investment, acquisition, […]
One of the best ways to think you are the only company not doing well is to go to a networking event and ask other founders about their “run rate.” You’ll hear that 6 month old companies are on a $50M run rate or that a three person startup is on a $100M run rate. […]
Minutes before the first meeting of my startup’s seed round, a wise advisor pulled me aside. “This is going to be wild,” he warned, with a knowing smile. “Brace yourself.” Several months later, after raising $850,000 for my startup, ReelGenie, the ride has stopped (for now). I hopped off the fundraising roller coaster with memories […]
Giving up equity in your business, as an alternative to paying cash, often sounds like a great idea to cash starved startups. But, giving up equity in your business is often a very big decision, and can come at a long-term price, both financially and operationally. This lesson will help you figure out when it is appropriate […]