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Want to Know How VC’s Calculate Valuation Differently from Founders?

Want to Know How VC’s Calculate Valuation Differently from Founders?
Back in 1999 when I first raised venture capital I had zero knowledge of what a fair term sheet looked like or how to value my company. Due to competitive markets we ended up with a pretty good term sheet until we needed to raise money in April 2001 and then we got completely screwed. It was accept the terms or go into bankruptcy so we took the money. But the truth is that I didn’t really understand just how screwed I was until years later when I finally understood every term in a term sheet and more importantly I understood how each term could actually be used to screw me. Back then VentureHacks didn’t exist. I don’t feel that as a VC sneaking in nefarious terms into a term sheet that the entrepreneur doesn’t understand is a good way to build a long-term relationship nor to build a long-term reputation but this does happen and more frequently than we all would like. This starts with understanding how VCs and entrepreneurs often see valuation differently. I turned them down.

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One Feat, la start up incomprise à Paris va lever 500 000 dollars dans la Silicon Valley La vie est un jeu. Un jeu qui peut rapporter. Ils sont trois à en être persuadés. Souheil, Julien et Arnaud. Tellement persuadés que, lassés de leurs rencontres improductives avec les banquiers et business angels français, ils ont acheté, début 2012, 3 billets éco pour San Francisco et ont débarqué dans la Silicon Valley sans même savoir où ils allaient dormir. « Ce n'est pas parce qu'on n'a pas de business model, qu'on n'a pas de valeur » One Feat a-t-il un avenir ? « Une start up n'est pas faite pour avoir un business model et Facebook n'en a toujours pas» One Feat n'a pas, ne peut pas avoir de business model et dans la Valley ce n'est pas un problème. « Une start up n'est pas faite pour avoir un modèle business, elle est faite pour le chercher et lorsqu'elle l'aura découvert, elle pourra devenir la société qui l'exploite et l'optimise », explique Eric Ris, fondateur de Lean Startup. "A notre stade, la monétisation ne compte pas"

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Pourquoi Facebook et Google devraient avoir complètement disparu d’ici 5 ans ? - Blogs InternetActu.net La lecture de la semaine est un post de blog hébergé sur le site de Forbes, blog tenu par un certain Eric Jackson (@ericjackson), fondateur de la société de capital-risque IronFire. Le post est intitulé “Voici pourquoi Facebook et Google devraient avoir complètement disparu d’ici 5 ans”. Ce qui est intéressant, c’est que ce post a été écrit fin avril, bien avant donc les déboires qui accompagnent l’introduction de Facebook au Nasdaq en début de semaine. Mais il donne des pistes pour comprendre à quel point Facebook a été survalorisé. deadend Image : Dead end photographié par ashley adcox. Eric Jackson commence par expliquer que deux théories s’affrontent pour expliquer les cycles de vie des grandes entreprises. Voici l’analyse d’Eric Jackson, dont je rappelle qu’elle précède les événements des derniers jours. Cette fragmentation se fera sans doute au détriment de l’essence de Facebook. Voilà pour ce post lu sur Forbes. Xavier de la Porte

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Crunchies 2011 5 Lessons from 150 startup pitches I just reviewed several hundred startup pitches for Capital Factory. Most were on paper and video; 20 were invited to pitch in person. Interesting patterns emerged: Everyone makes the same classes of error.Those who avoided just one of those errors stood out in the crowd.These are problems with the business concept or the founder’s attitude, not specific to raising angel money. You’re probably making a lot of these errors too. Not that I blame you! So for the next few weeks I’m doing a series on these mistakes and what to do about them. Here’s the list: Invalid competitive advantages “Superior SEO” and “unique features” are not competitive advantages.Lacking an unfair advantage You need one killer advantage that no one on Earth can beat you on. There’s also this list, equally common but I didn’t feel the urge to write an entire blog post on each one: Unable to describe the company in 60 seconds.

If The Tech Industry Had Its Way, Hollywood Would Be Zynga Like all of y’all I just read Paul Graham’s SOPA-soaked call for a tech startup that would kill Hollywood. You would have to be a complete idiot to think Hollywood (or at least some part of Hollywood) isn’t ripe for disruption BUT … “The people who run it are so mean and so politically connected that they could do a lot of damage to civil liberties and the world economy on the way down. It would therefore be a good thing if competitors hastened their demise.” Damn. What I’m getting from this post is that Hollywood should die, because people are mean. Graham recommends, “The best way to approach this problem is to ask yourself: what are people going to do for fun in 20 years instead of what they do now?” Their answer: “I’d guess a lot more games. What I’ve never understood is this, it is some function of Hollywood, Silicon Valley and the New York media industry to tell human stories and distribute them — they are all symbiotic. Please, raise your hand.

31 Things I Learned From Running a Business | Dana DiTomaso A few months ago, I was asked to give a talk to a group of University of Toronto engineering students who were interested in entrepreneurship. This is the list of “things I learned” that I presented to them and I think you’ll find it useful too – no matter if you’re just getting started or if you’ve been doing this for a while. 1. Have an exit strategy. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31.

Salcombe History Society | Exploring the history of Salcombe, South Devon

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