Building on the startup-oriented tools that Rick has published on his startup law website, we’ve created a simplified valuation framework for you. We’ve extracted this tool from financial models and valuations we’ve built for clients over the years. The multiples have to be adjusted for a specific business and market, but the current values are…
Read MoreA founder recently asked about how much money to raise and when. Specifically, he asks about choosing between splitting a $1.4m, two-year round into $800k for year 1 and then $600k for year 2. The key issue in splitting rounds is raising enough money (including your cushion) to get you to the next major valuation-bumping…
Read MoreThe NYT displayed some confusion about finance realities in this older column about net operating losses, a perennial “favorite” topic of ours. We’ve done some complex planning (aka invent new deal structures) for a corporation and its shareholders that held as an unfortunate asset a vast amount of net operating losses (NOLs). We reviewed a…
Read MoreSomeone recently asked about the cost for a valuation. As with many questions we hear, this one also has to be answered with a question: why do you need a valuation? And that, in turn, is really better framed as this question: what are you trying to do, and let us give you some guidance…
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