This post is the second in a series giving practical advice to startups on understanding and negotiating a venture capital term sheet. This post will focus on pre-money valuation, capitalization, and price per share.
Previously, we provided a general overview of venture capital terms sheets and some of the pitfalls a startup may encounter when it comes to “binding” vs. “non-binding” provisions. In this post, we will discuss the issue that is usually in the forefront of most founder’s minds: the valuation of the company. [Read more...]