 |
|
pre-money
Valuation and Option Pool
Jeff correctly points out that the pre-money valuation of the company is not what entrepreneurs should focus on exclusively because the pre-money includes an option pool, which is under board control. Instead, he suggests that entrepreneurs should look at “the promote” which is the ownership of the founders * the post money as an indication of how good a deal they got. In his example he compares a 6 on 7 offer with a 20% pool with a 6 on 9 offer with a 30% pool. The promote in the first case is $4.4M (34% of 13M post) and in the second it is $4.5M (30% of $15M post).
Comparing term sheets « HighContrast
Spreadsheet programs
This spreadsheet calculates the implied risk premium in a market. This can be used in discounted cashflow valuation to do market neutral valuation. Valuation Model Reconciliation This program converts R& D expenses from operating to capital expenses, estimates a value for the research asset and restates operating income. fcfevsddm.xls This program converts operating lease expenses into financing expenses and restates operating income and debt outstanding.
Kevin Quealy and Dylan Loeb McClain / The New York Times Source: Wilshire Associates A year ago, financial companies were flying high. But as problems in the mortgage and credit markets have grown, the stocks of many Wall Street firms have been hard hit.
 |
|
 |