

Want to Know How VCs Calculate Valuation Differently from Founders? - rpledge
http://www.bothsidesofthetable.com/2010/07/22/want-to-know-how-vcs-calculate-valuation-differently-from-founders/

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rmah
I just watched (well, really mostly listened to) the video embedded in the
article and I highly recommend it.

I was involved in VC negotiations during the bubble and was a bit confused
about some of the stuff beyond the basics. Luckily, we had good lawyers and my
partners were fairly well versed in finance.

I've also noticed that many people have are confused about how the corporate
governence works. They also talk a little about how the board of directors
work and how it interacts with investor rights.

Finally, if you're not comfortable with finance, you might need to watch it a
few times before you fully understand what they're talking about, but it's
well worth it.

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bosch
This was an awesome post and very informative. I especially liked how he
explained that the share pool would come out of the founders pool. That's
something important to keep in mind as that's a huge amount of equity!

Sometimes I wonder if Mark knows that he could be getting much better deals if
he didn't tell us all these things?

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Tichy
Why video? Isn't this the kind of information you would like to refer to
frequently, which is hard to do in video format?

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kwyjibo
Well if you have raised 6 millions and you sell the company for 10 million,
and still manage to get 1.6 million, then I think you made a very good deal.

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togasystems
As a young entrepreneur starting out, this video explained a number of terms
(pun intended) that I had no idea about before.

Thanks Mark Suster!

