ENT 526 Lecture Notes - Lecture 9: Crowdfunding, Debenture, Coworking
1 Feb 2016
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Document Summary
Pre money valuation = what is the company worth the day before the deal. Post money valuation = pre money valuation plus the money. In the example: the pre mv is . 5m. Pre-money evaluation what the company is worth today without the investment or financing from a venture capitalist. An investor offers you ,000 on a pre. What the company is worth today after the investment has been made from the vc. The value of the post money is equal to [pre money + investment] A founder comes to you and asks for ,000 for 20% of the company. Looks like a loan, but converts on trigger event to equity. Triggers: sale, ipo or large funding round o o. If you fail, investor gets preferable tax treatment. Avoids setting a valuation until much later on (seed vc use this) Building a founding team o o: why not go it alone? o o o.
