How do startup valuations work?

By rickColosimo / May 10, 2016 / Comments Off on How do startup valuations work?

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…

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Too much runway

By rickColosimo / March 2, 2016 / Comments Off on Too much runway

Too much runway, and you may never take off. Here’s the write-up I saw in the Next Draft newsletter (hey there, Dave!) that pointed me to a story about Slack’s then-recent venture financing: Give me some slack … equity. The company’s product is about a year old. But investors just invested $120 million into Slack…

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Stealing from the future

By rickColosimo / May 5, 2015 / Comments Off on Stealing from the future

There are plenty of examples where companies and government units borrow from their future in different ways. There are very different issues for the two actors, so we’ll split this into two posts: this one on companies and another future post on government. The traditional way that companies approach capital needs is to borrow money,…

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