How Do Investors Decide – How Much Equity They Need, How Many Shares To Issue, How To Price The Share?
Ignore the first two slides if you’re unaware of the methods.
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Different ways to create value – product, dollar, speed, convenience
Traditionally, they say there are four ways of creating value: Product Cost/Price Speed Convenience Entrepreneur magazine says that there are three ways of creating value – Price, Quality and Speed. Remember the days when places like printing companies and auto body shops posted cartoons that showed an employee laughing hysterically, accompanied by a line like, “You […]
MoreWhy startups like Flipkart are worth more than Tata Motors?
This article is written by Minhaz Merchant and the original article is here. Got a great new idea? Are you from IIT? Here’s a $5 million cheque. That’s the dream conversation every 20-year-old has with a fantasy venture capital (VC) or private equity (PE) firm. And there are lots of people living out that fantasy. […]
MoreWhy the team means more than the idea in a start-up?
Ideas are a dime a dozen, at least in the start-up world. Paul Graham once said that ideas mean something, but execution means far more. He also said that if he provided the entire idea to a team and the team executes the idea, he would still be entitled to less than 10% of the company. […]
MoreHow start-up equity dilution works for Founders and Early Investors ?
Startups typically have three broad ways of funding their companies. They are incubators/accelerators, angel investors, and venture capitalists (institutional investor). Generally, Incubators and Accelerators help the start-up team to set-up the company, and shape the start-up’s Go-To-Market strategy. This article is limited only to explain how the equity dilution works and won’t get into the […]
MoreManaging the VC
The following is a nice article from The Economic Times on start-up and fund-raising. I thought it would be a good article for all the start-up buddies here. To raise risk capital from a private equity or venture capital investor marks a high point for most start-up companies . It sets to rest one of […]
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