O'Reilly logo

Angels, Dragons and Vultures: How to Tame Your Investors And Not Lose Your Company by Simon Acland

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

SIMPLE VALUATIONS

Term sheets have become steadily longer over the years. The main reason is that deal structures have become ever more complicated. I view myself as an optimistic progressive, so terms like “in the good old days” do not really come naturally to me, but here I cannot prevent myself.

In the good old days, if an investor offered $1 million for 25% of the equity, it generally meant what it said. Until that moment, as there is no market in your shares, there is no empirical way of calculating your company’s value. But, you might think, once the investment offer is made, the valuation should be pretty easy to calculate. If the investor puts down $1 million for one quarter of the business, then surely the business is worth $4 million. ...

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required