http://www.askventure.com Venture capital funding, preferred stock financing, calculate pre-money valuation, liquidation preference, free term sheet cap table sample download Mon, 28 Jun 2010 05:41:08 +0000 http://wordpress.org/?v=2.9.2 en hourly 1 http://www.askventure.com/what-are-demand-and-piggyback-registration-rights-in-a-venture-capital-investment/ http://www.askventure.com/what-are-demand-and-piggyback-registration-rights-in-a-venture-capital-investment/#comments Mon, 28 Jun 2010 05:41:08 +0000 AskVenture.com http://www.askventure.com/?p=218

What is Series A Convertible Preferred Stock Funding and Financing in a Venture Capital Investment? What is Venture Capital? Venture capitalists provide venture capital to startup, high growth companies usually with a prospect of achieving an IPO within a number of years (e.g., 3-5 years). Venture capitalists generally invest in the form of funds that are privately held limited partnerships (LP). What is a Venture Capital Fund? A venture capital fund is [...]...

Exercise price of share option under a share option scheme of a Hong Kong listed company This article sets out the basis of determination of the exercise price of share options to be granted under a share option scheme of a company listed on The Stock Exchange of Hong Kong Limited (Hong Kong Stock Exchange). Hong Kong Listing Rules If the shares of a company is listed on the Hong Kong Stock Exchange, [...]...

Venture capital exits – trade sale vs IPO – compared and analyzed Way before a venture capitalist invests in a company, he is already thinking how and when to exit from the investment. This article tells you why and compares between the two venture capital exits – trade sale and IPO. Illiquid nature and limited life-span of a VC fund A well-planned exit is particularly important in a VC investment [...]...

Pre-money, Post-money Valuation and Calculation in a Venture Capital Investment What is pre-money valuation and post-money valuation? The pre-money valuation of a company refers to the valuation of the company before an investor injects capital into the company. The post-money valuation of a company refers to the valuation of the company after an investor has injected capital into the company. Therefore, the post-money valuation of a [...]...

What is round trip investment? A review of China’s round trip regulations – Circular 75, M&A Rules, Circular 106 What is round trip investment? A round trip investment （返程投资）refers to an investment made by a Chinese resident in a Chinese domestic company through an offshore special purpose vehicle (SPV). For example, where a Chinese resident sets up an offshore holding company (e.g., a Hong Kong SPV or a Cayman Islands SPV) and invests into this [...]...

How to Calculate Liquidation Preference of Preferred Stock in a Venture Capital Financing? What is liquidation preference? Liquidation preference refers to preferred shareholders’ rights to receive a certain amount for the preferred shares they hold in preference to common shareholders in the event that a company goes into liquidation. The scope of liquidation preference varies between different term sheets. Some may be extremely favorable to investors, some may be less. [...]...

]]> http://www.askventure.com/what-are-demand-and-piggyback-registration-rights-in-a-venture-capital-investment/feed/ 3 http://www.askventure.com/should-venture-capitalists-or-private-equity-firms-actively-indulge-in-social-media/ http://www.askventure.com/should-venture-capitalists-or-private-equity-firms-actively-indulge-in-social-media/#comments Fri, 11 Jun 2010 13:54:23 +0000 AskVenture.com http://www.askventure.com/?p=212 http://www.askventure.com/should-venture-capitalists-or-private-equity-firms-actively-indulge-in-social-media/feed/ 2 http://www.askventure.com/sample-liquidation-preference-clause-in-a-typical-venture-capital-term-sheet/ http://www.askventure.com/sample-liquidation-preference-clause-in-a-typical-venture-capital-term-sheet/#comments Fri, 07 May 2010 09:50:48 +0000 AskVenture.com http://www.askventure.com/?p=201

How to Calculate Liquidation Preference of Preferred Stock in a Venture Capital Financing? What is liquidation preference? Liquidation preference refers to preferred shareholders’ rights to receive a certain amount for the preferred shares they hold in preference to common shareholders in the event that a company goes into liquidation. The scope of liquidation preference varies between different term sheets. Some may be extremely favorable to investors, some may be less. [...]...

Participating vs non-participating preferred stock in liquidation preference What is liquidation preference? Liquidation preference refers to preferred stockholders’ rights to receive a certain amount for the preferred stock they hold in preference to common stockholders in the event that a company goes into liquidation. What is non-participating preferred stock? Non-participating preferred stock means in the event of a liqudiation, preferred stockholders will receive a certain amount [...]...

What is Series A Convertible Preferred Stock Funding and Financing in a Venture Capital Investment? What is Venture Capital? Venture capitalists provide venture capital to startup, high growth companies usually with a prospect of achieving an IPO within a number of years (e.g., 3-5 years). Venture capitalists generally invest in the form of funds that are privately held limited partnerships (LP). What is a Venture Capital Fund? A venture capital fund is [...]...

Download Sample Share Cap Table Template of a Venture Capital Term Sheet About this cap table This is excatly the kind of cap table that law firms or venture capitalists would use in a venture capital financing transaction. It shows you: 1. Capitalization of a company at founding (before preferred stock financing – Series A financing) 2. Capitalization of a company after preferred stock financing – Series A financing 3. Capitalization calculated both on [...]...

Pre-money, Post-money Valuation and Calculation in a Venture Capital Investment What is pre-money valuation and post-money valuation? The pre-money valuation of a company refers to the valuation of the company before an investor injects capital into the company. The post-money valuation of a company refers to the valuation of the company after an investor has injected capital into the company. Therefore, the post-money valuation of a [...]...

What is a venture capital term sheet? Is a Series A term sheet binding? A term sheet is a document that summarizes the key terms of a proposed investment. It is sometimes called a letter of intent. Typically, a term sheet is not binding, except for confidentiality, exclusivity and expenses (or transaction fees). Exclusivity is sometimes called no-shop no-solicitation clause. Click here to download your free sample term sheet / letter [...]...

Download Sample Venture Capital Term Sheet / Letter of Intent Free Download your sample venture capital term sheet / letter of intent now.  Please note that this is a term sheet taken from the National Venture Capital Association. It does not constitute legal advice. If you have any doubt as to this term sheet, please consult your legal adviser or professional consultant. ...

Calculate pre-money valuation of startup company seeking venture capital funding Pre-money valuation – the basic concept The calculation of the pre-money valuation of a startup company seeking venture capital financing is as much a science as an art. It is a science because a lot of the calculations are based on scientific methods – the use of equations, formulas, comparators, etc. It is an art because [...]...

]]> http://www.askventure.com/sample-liquidation-preference-clause-in-a-typical-venture-capital-term-sheet/feed/ 8 http://www.askventure.com/download-pre-post-ipo-global-offering-stats-shareholding-cap-table-spreadsheet-template-sample-xls/ http://www.askventure.com/download-pre-post-ipo-global-offering-stats-shareholding-cap-table-spreadsheet-template-sample-xls/#comments Sat, 01 May 2010 04:03:52 +0000 AskVenture.com http://www.askventure.com/?p=192

Download Sample Share Cap Table Template of a Venture Capital Term Sheet About this cap table This is excatly the kind of cap table that law firms or venture capitalists would use in a venture capital financing transaction. It shows you: 1. Capitalization of a company at founding (before preferred stock financing – Series A financing) 2. Capitalization of a company after preferred stock financing – Series A financing 3. Capitalization calculated both on [...]...

Download Sample Venture Capital Term Sheet / Letter of Intent Free Download your sample venture capital term sheet / letter of intent now.  Please note that this is a term sheet taken from the National Venture Capital Association. It does not constitute legal advice. If you have any doubt as to this term sheet, please consult your legal adviser or professional consultant. ...

Sample liquidation preference clause in a typical venture capital term sheet I get asked a lot for a sample clause on liquidation preference used in a typical venture capital term sheet. So, I’ve put together an all-in-one sample clause here for your reference. The good thing about this sample clause is that it covers or can be modified to cover the scenarios of (1) participating preferred with a [...]...

Pre-money, Post-money Valuation and Calculation in a Venture Capital Investment What is pre-money valuation and post-money valuation? The pre-money valuation of a company refers to the valuation of the company before an investor injects capital into the company. The post-money valuation of a company refers to the valuation of the company after an investor has injected capital into the company. Therefore, the post-money valuation of a [...]...

]]> http://www.askventure.com/download-pre-post-ipo-global-offering-stats-shareholding-cap-table-spreadsheet-template-sample-xls/feed/ 1 http://www.askventure.com/exercise-price-of-share-option-under-a-share-option-scheme-of-a-hong-kong-listed-company/ http://www.askventure.com/exercise-price-of-share-option-under-a-share-option-scheme-of-a-hong-kong-listed-company/#comments Mon, 26 Apr 2010 02:34:56 +0000 AskVenture.com http://www.askventure.com/?p=184

What is vesting period of an employee stock option plan (ESOP)? This article discusses what vesting period is in the context of employee stock option plan (ESOP) – something that a company needs to decide when adopting an ESOP or when granting options under an ESOP. I will also set out different examples of vesting periods. What is vesting period? Vesting period refers to the minimum period for which [...]...

What is Employee Stock Option Plan, ESOP, fully diluted shares? What is Employee Stock Option Plan (ESOP)? In a typical venture capital investment, the investor and the company will agree to the creation of an option pool before the investor invests in the company. The option pool is also sometimes called an option plan, Employee Stock Option Plan, or ESOP – usually defined as the “Plan” [...]...

What is split share structure and split share reform? What is the split share structure(股权分置改革）? Not all the shares in a company incorporated in China that are listed on a stock exchange are freely tradable. The split share structure of the Chinese public securities market refers to the existence of a large amount of non-tradable shares, including state-owned shares and legal person shares of a [...]...

What are demand and piggyback registration rights in a venture capital investment? This article discusses the two types of registration rights that you will find in a typical venture capital financing – demand registration rights and piggyback registration rights. Why do you need to register your shares? Skipping all the legal nonsense and jargon, if you want to sell shares of a company on a stock exchange in the [...]...

A, B, H Shares of the Chinese public securities capital markets Freely tradable shares in a listed Chinese company fall into 3 categories: A-shares A-shares are shares in companies incorporated in China that are listed on the Chinese A-shares market for trading among Chinese citizens and Qualified Foreign Institutional Investors (QFII) (合格境外机构投资者). A-shares are quoted in RMB. Examples of QFII as approved by the State Administration of Foreign Exchange [...]...

Download Sample Share Cap Table Template of a Venture Capital Term Sheet About this cap table This is excatly the kind of cap table that law firms or venture capitalists would use in a venture capital financing transaction. It shows you: 1. Capitalization of a company at founding (before preferred stock financing – Series A financing) 2. Capitalization of a company after preferred stock financing – Series A financing 3. Capitalization calculated both on [...]...

From Seed Capital to Angel Investors to Venture Capital Funding – Startup Company Financing Model This article gives an overview of how a startup company goes from seed capital to angel investors to venture capital funding (Series A round) – the classic startup company financing model. Seed capital / Seed round / Seed funding Say, 3 people decide to start a business in biotechnology. They do so by incorporating a company [...]...

China to Launch Growth Enterprise Board on May 1, 2009 This article gives a legal review of the China Securities Regulatory Commission’s (CSRC) (中国证监会) announcement on March 31, 2009 regarding the launch of China’s growth enterprise board (创业板) on May 1, 2009. On March 31, 2009, the CSRC issued the “Provisional Regulations on IPO and Listing on the Growth Enterprise Market” 《首次公开发行股票并在创业板上市管理暂行办法》 regarding the launch of [...]...

]]> http://www.askventure.com/exercise-price-of-share-option-under-a-share-option-scheme-of-a-hong-kong-listed-company/feed/ 4 http://www.askventure.com/venture-capital-exits-trade-sale-vs-ipo-compared-and-analyzed/ http://www.askventure.com/venture-capital-exits-trade-sale-vs-ipo-compared-and-analyzed/#comments Wed, 21 Apr 2010 04:50:07 +0000 AskVenture.com http://www.askventure.com/?p=155

Risky but High Potential Return Nature of Venture Capital Investments Risky nature of venture capital investments A crucial aspect of venture capital investment is the ability to identify novel technologies at a very early stage that have a potential of generating huge return within just a number of years’ time. This is because when a venture capitalist invests in a startup company, the company is [...]...

How to Calculate Liquidation Preference of Preferred Stock in a Venture Capital Financing? What is liquidation preference? Liquidation preference refers to preferred shareholders’ rights to receive a certain amount for the preferred shares they hold in preference to common shareholders in the event that a company goes into liquidation. The scope of liquidation preference varies between different term sheets. Some may be extremely favorable to investors, some may be less. [...]...

What is Series A Convertible Preferred Stock Funding and Financing in a Venture Capital Investment? What is Venture Capital? Venture capitalists provide venture capital to startup, high growth companies usually with a prospect of achieving an IPO within a number of years (e.g., 3-5 years). Venture capitalists generally invest in the form of funds that are privately held limited partnerships (LP). What is a Venture Capital Fund? A venture capital fund is [...]...

From Seed Capital to Angel Investors to Venture Capital Funding – Startup Company Financing Model This article gives an overview of how a startup company goes from seed capital to angel investors to venture capital funding (Series A round) – the classic startup company financing model. Seed capital / Seed round / Seed funding Say, 3 people decide to start a business in biotechnology. They do so by incorporating a company [...]...

What are demand and piggyback registration rights in a venture capital investment? This article discusses the two types of registration rights that you will find in a typical venture capital financing – demand registration rights and piggyback registration rights. Why do you need to register your shares? Skipping all the legal nonsense and jargon, if you want to sell shares of a company on a stock exchange in the [...]...

What is a venture capital term sheet? Is a Series A term sheet binding? A term sheet is a document that summarizes the key terms of a proposed investment. It is sometimes called a letter of intent. Typically, a term sheet is not binding, except for confidentiality, exclusivity and expenses (or transaction fees). Exclusivity is sometimes called no-shop no-solicitation clause. Click here to download your free sample term sheet / letter [...]...

Sample liquidation preference clause in a typical venture capital term sheet I get asked a lot for a sample clause on liquidation preference used in a typical venture capital term sheet. So, I’ve put together an all-in-one sample clause here for your reference. The good thing about this sample clause is that it covers or can be modified to cover the scenarios of (1) participating preferred with a [...]...

Pre-money, Post-money Valuation and Calculation in a Venture Capital Investment What is pre-money valuation and post-money valuation? The pre-money valuation of a company refers to the valuation of the company before an investor injects capital into the company. The post-money valuation of a company refers to the valuation of the company after an investor has injected capital into the company. Therefore, the post-money valuation of a [...]...

]]> http://www.askventure.com/venture-capital-exits-trade-sale-vs-ipo-compared-and-analyzed/feed/ 5 http://www.askventure.com/what-is-vesting-period-of-an-employee-stock-option-plan-esop/ http://www.askventure.com/what-is-vesting-period-of-an-employee-stock-option-plan-esop/#comments Mon, 19 Apr 2010 04:39:25 +0000 AskVenture.com http://www.askventure.com/?p=147

What is Employee Stock Option Plan, ESOP, fully diluted shares? What is Employee Stock Option Plan (ESOP)? In a typical venture capital investment, the investor and the company will agree to the creation of an option pool before the investor invests in the company. The option pool is also sometimes called an option plan, Employee Stock Option Plan, or ESOP – usually defined as the “Plan” [...]...

Exercise price of share option under a share option scheme of a Hong Kong listed company This article sets out the basis of determination of the exercise price of share options to be granted under a share option scheme of a company listed on The Stock Exchange of Hong Kong Limited (Hong Kong Stock Exchange). Hong Kong Listing Rules If the shares of a company is listed on the Hong Kong Stock Exchange, [...]...

Pre-money, Post-money Valuation and Calculation in a Venture Capital Investment What is pre-money valuation and post-money valuation? The pre-money valuation of a company refers to the valuation of the company before an investor injects capital into the company. The post-money valuation of a company refers to the valuation of the company after an investor has injected capital into the company. Therefore, the post-money valuation of a [...]...

What is Series A Convertible Preferred Stock Funding and Financing in a Venture Capital Investment? What is Venture Capital? Venture capitalists provide venture capital to startup, high growth companies usually with a prospect of achieving an IPO within a number of years (e.g., 3-5 years). Venture capitalists generally invest in the form of funds that are privately held limited partnerships (LP). What is a Venture Capital Fund? A venture capital fund is [...]...

Risky but High Potential Return Nature of Venture Capital Investments Risky nature of venture capital investments A crucial aspect of venture capital investment is the ability to identify novel technologies at a very early stage that have a potential of generating huge return within just a number of years’ time. This is because when a venture capitalist invests in a startup company, the company is [...]...

How to Calculate Liquidation Preference of Preferred Stock in a Venture Capital Financing? What is liquidation preference? Liquidation preference refers to preferred shareholders’ rights to receive a certain amount for the preferred shares they hold in preference to common shareholders in the event that a company goes into liquidation. The scope of liquidation preference varies between different term sheets. Some may be extremely favorable to investors, some may be less. [...]...

]]> http://www.askventure.com/what-is-vesting-period-of-an-employee-stock-option-plan-esop/feed/ 4 http://www.askventure.com/participating-vs-non-participating-preferred-stock-in-liquidation-preference/ http://www.askventure.com/participating-vs-non-participating-preferred-stock-in-liquidation-preference/#comments Thu, 15 Apr 2010 14:15:02 +0000 AskVenture.com http://www.askventure.com/?p=104

How to Calculate Liquidation Preference of Preferred Stock in a Venture Capital Financing? What is liquidation preference? Liquidation preference refers to preferred shareholders’ rights to receive a certain amount for the preferred shares they hold in preference to common shareholders in the event that a company goes into liquidation. The scope of liquidation preference varies between different term sheets. Some may be extremely favorable to investors, some may be less. [...]...

Sample liquidation preference clause in a typical venture capital term sheet I get asked a lot for a sample clause on liquidation preference used in a typical venture capital term sheet. So, I’ve put together an all-in-one sample clause here for your reference. The good thing about this sample clause is that it covers or can be modified to cover the scenarios of (1) participating preferred with a [...]...

What is Series A Convertible Preferred Stock Funding and Financing in a Venture Capital Investment? What is Venture Capital? Venture capitalists provide venture capital to startup, high growth companies usually with a prospect of achieving an IPO within a number of years (e.g., 3-5 years). Venture capitalists generally invest in the form of funds that are privately held limited partnerships (LP). What is a Venture Capital Fund? A venture capital fund is [...]...

What is Employee Stock Option Plan, ESOP, fully diluted shares? What is Employee Stock Option Plan (ESOP)? In a typical venture capital investment, the investor and the company will agree to the creation of an option pool before the investor invests in the company. The option pool is also sometimes called an option plan, Employee Stock Option Plan, or ESOP – usually defined as the “Plan” [...]...

Pre-money, Post-money Valuation and Calculation in a Venture Capital Investment What is pre-money valuation and post-money valuation? The pre-money valuation of a company refers to the valuation of the company before an investor injects capital into the company. The post-money valuation of a company refers to the valuation of the company after an investor has injected capital into the company. Therefore, the post-money valuation of a [...]...

Download Sample Share Cap Table Template of a Venture Capital Term Sheet About this cap table This is excatly the kind of cap table that law firms or venture capitalists would use in a venture capital financing transaction. It shows you: 1. Capitalization of a company at founding (before preferred stock financing – Series A financing) 2. Capitalization of a company after preferred stock financing – Series A financing 3. Capitalization calculated both on [...]...

Calculate pre-money valuation of startup company seeking venture capital funding Pre-money valuation – the basic concept The calculation of the pre-money valuation of a startup company seeking venture capital financing is as much a science as an art. It is a science because a lot of the calculations are based on scientific methods – the use of equations, formulas, comparators, etc. It is an art because [...]...

From Seed Capital to Angel Investors to Venture Capital Funding – Startup Company Financing Model This article gives an overview of how a startup company goes from seed capital to angel investors to venture capital funding (Series A round) – the classic startup company financing model. Seed capital / Seed round / Seed funding Say, 3 people decide to start a business in biotechnology. They do so by incorporating a company [...]...

]]> http://www.askventure.com/participating-vs-non-participating-preferred-stock-in-liquidation-preference/feed/ 4 http://www.askventure.com/download-sample-share-cap-table-template-of-a-venture-capital-term-sheet/ http://www.askventure.com/download-sample-share-cap-table-template-of-a-venture-capital-term-sheet/#comments Tue, 13 Apr 2010 14:55:13 +0000 AskVenture.com http://www.askventure.com/?p=65

Pre-money, Post-money Valuation and Calculation in a Venture Capital Investment What is pre-money valuation and post-money valuation? The pre-money valuation of a company refers to the valuation of the company before an investor injects capital into the company. The post-money valuation of a company refers to the valuation of the company after an investor has injected capital into the company. Therefore, the post-money valuation of a [...]...

Download pre post ipo global offering stats shareholding cap table spreadsheet template sample xls This is a spreadsheet used by a major investment bank and law firms showing the IPO offering stats of a company contemplating IPO in a real-live IPO deal (with sensitive and confidential information removed). It is divided into three parts: 1. Offering stats at IPO (market cap, forecast earning, pe ratio, offer price, IPO proceeds, capitalization issue, [...]...

Sample liquidation preference clause in a typical venture capital term sheet I get asked a lot for a sample clause on liquidation preference used in a typical venture capital term sheet. So, I’ve put together an all-in-one sample clause here for your reference. The good thing about this sample clause is that it covers or can be modified to cover the scenarios of (1) participating preferred with a [...]...

Calculate pre-money valuation of startup company seeking venture capital funding Pre-money valuation – the basic concept The calculation of the pre-money valuation of a startup company seeking venture capital financing is as much a science as an art. It is a science because a lot of the calculations are based on scientific methods – the use of equations, formulas, comparators, etc. It is an art because [...]...

Download Sample Venture Capital Term Sheet / Letter of Intent Free Download your sample venture capital term sheet / letter of intent now.  Please note that this is a term sheet taken from the National Venture Capital Association. It does not constitute legal advice. If you have any doubt as to this term sheet, please consult your legal adviser or professional consultant. ...

What is Employee Stock Option Plan, ESOP, fully diluted shares? What is Employee Stock Option Plan (ESOP)? In a typical venture capital investment, the investor and the company will agree to the creation of an option pool before the investor invests in the company. The option pool is also sometimes called an option plan, Employee Stock Option Plan, or ESOP – usually defined as the “Plan” [...]...

What is Series A Convertible Preferred Stock Funding and Financing in a Venture Capital Investment? What is Venture Capital? Venture capitalists provide venture capital to startup, high growth companies usually with a prospect of achieving an IPO within a number of years (e.g., 3-5 years). Venture capitalists generally invest in the form of funds that are privately held limited partnerships (LP). What is a Venture Capital Fund? A venture capital fund is [...]...

What is a venture capital term sheet? Is a Series A term sheet binding? A term sheet is a document that summarizes the key terms of a proposed investment. It is sometimes called a letter of intent. Typically, a term sheet is not binding, except for confidentiality, exclusivity and expenses (or transaction fees). Exclusivity is sometimes called no-shop no-solicitation clause. Click here to download your free sample term sheet / letter [...]...

]]> http://www.askventure.com/download-sample-share-cap-table-template-of-a-venture-capital-term-sheet/feed/ 1 http://www.askventure.com/what-is-a-venture-capital-term-sheet-is-a-series-a-term-sheet-binding/ http://www.askventure.com/what-is-a-venture-capital-term-sheet-is-a-series-a-term-sheet-binding/#comments Tue, 13 Apr 2010 14:49:59 +0000 AskVenture.com http://www.askventure.com/?p=62

Download Sample Venture Capital Term Sheet / Letter of Intent Free Download your sample venture capital term sheet / letter of intent now.  Please note that this is a term sheet taken from the National Venture Capital Association. It does not constitute legal advice. If you have any doubt as to this term sheet, please consult your legal adviser or professional consultant. ...

Download Sample Share Cap Table Template of a Venture Capital Term Sheet About this cap table This is excatly the kind of cap table that law firms or venture capitalists would use in a venture capital financing transaction. It shows you: 1. Capitalization of a company at founding (before preferred stock financing – Series A financing) 2. Capitalization of a company after preferred stock financing – Series A financing 3. Capitalization calculated both on [...]...

Sample liquidation preference clause in a typical venture capital term sheet I get asked a lot for a sample clause on liquidation preference used in a typical venture capital term sheet. So, I’ve put together an all-in-one sample clause here for your reference. The good thing about this sample clause is that it covers or can be modified to cover the scenarios of (1) participating preferred with a [...]...

What is Series A Convertible Preferred Stock Funding and Financing in a Venture Capital Investment? What is Venture Capital? Venture capitalists provide venture capital to startup, high growth companies usually with a prospect of achieving an IPO within a number of years (e.g., 3-5 years). Venture capitalists generally invest in the form of funds that are privately held limited partnerships (LP). What is a Venture Capital Fund? A venture capital fund is [...]...

Venture capital exits – trade sale vs IPO – compared and analyzed Way before a venture capitalist invests in a company, he is already thinking how and when to exit from the investment. This article tells you why and compares between the two venture capital exits – trade sale and IPO. Illiquid nature and limited life-span of a VC fund A well-planned exit is particularly important in a VC investment [...]...

Pre-money, Post-money Valuation and Calculation in a Venture Capital Investment What is pre-money valuation and post-money valuation? The pre-money valuation of a company refers to the valuation of the company before an investor injects capital into the company. The post-money valuation of a company refers to the valuation of the company after an investor has injected capital into the company. Therefore, the post-money valuation of a [...]...

From Seed Capital to Angel Investors to Venture Capital Funding – Startup Company Financing Model This article gives an overview of how a startup company goes from seed capital to angel investors to venture capital funding (Series A round) – the classic startup company financing model. Seed capital / Seed round / Seed funding Say, 3 people decide to start a business in biotechnology. They do so by incorporating a company [...]...

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