QA: 7 Fundraising Questions From Real Entrepreneurs

Topics: Acquisition, Common Stock, Copyright, Management, Networking

Video... We received so much positive feedback from our This Week in Venture Capital show walking through valuation calculations& term sheets that we decided to do a Q show this week to address topics that entrepreneurs want to learn about. We will continue to do more of this. A: It's not best. The best thing to get is a "right sized" valuation. People assume that I'm biased because I'm a VC and think you should always get the highest valuation possible. This is wrong. I eventually needed more money. The A round was done in February 2000 (end of the…

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How Deal Terms Affect Valuation & Liquidity

Topics: Acquisition, Common Stock, Equity, Investor, Venture Capital

By Justin Byers, Business Intelligence Analyst Last week, entrepreneur turned venture capitalist and blogger Mark Suster had an excellent post titled, "Want to Know How VC's Calculate Valuation Differently from Founders?". In his post, he referenced the importance of deal terms to company founders and we wanted to expand upon that discussion. First of all, I do not know Mr. Suster, so any additional observations revealed within this post are simply the result of further analysis utilizing the tools and information available at www.vcexperts.com . Whether it be "The Encyclopedia of Private Equity and Venture Capital", the "Glossary of Private…

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How VCs Calculate Valuation (And How It's Different From The Way Founders Do It)

Topics: Bankruptcy, Common Stock, Copyright, Marketing, Venture Capital

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. Those were the dog days of entrepreneurship. 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…

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AIG Set To Pay $725 Million To The State Of Ohio

Topics: Accounting, Common Stock, Copyright, Corporation, Insurance

The settlement resolves allegations of AIG's wide-ranging fraud from October 1999 to April 2005 involving anti-competitive market division, accounting violations and stock price manipulation, and brings total expected recovery for AIG shareholders to over $1 billion. The settlement is subject to court approval. This historic settlement is an excellent result for all shareholders harmed by AIG's misconduct, including Ohio's teachers, firefighters, police officers, and public employees. Ohio is determined to send a strong message to the marketplace that companies who don't play by the rules will pay a steep price," said Cordray. Three Ohio public pension funds, represented by the…

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Hefner's move to take Playboy Enterprises private could put it in play

Topics: Advertising, Common Stock, Equity, Management, Merger

L.A. O.C. D.C. Money & Co. Opinion L.A. Founder of the struggling adult publishing empire, in an effort to reassert control, proposes to buy all outstanding shares he doesn't own. But rival Penthouse's owner is preparing a competing bid. Faced with a tepid stock price and growing pressure from Wall Street, Hefner startled the media world Monday by announcing a bid to reassert control over Playboy Enterprises Inc., the struggling adult publishing empire he founded in Chicago more than five decades ago. The proposed deal to buy all outstanding shares Hefner does not own would be financed by a Michigan-based…

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