Fundraising

  1. Valuation and Deal Terms
    1. Startup Valuation
      1. Pre-Money vs. Post-Money Valuation
        1. Definitions and Calculations
          1. Pre-Money Valuation Concept
            1. Post-Money Calculation Method
              1. Mathematical Relationships
                1. Practical Examples
                2. Impact on Ownership
                  1. Founder Dilution
                    1. Investor Ownership
                      1. Employee Pool Impact
                        1. Future Round Implications
                      2. Common Valuation Methods
                        1. Comparable Company Analysis (Comps)
                          1. Identifying Comparable Companies
                            1. Industry Matching
                              1. Size Considerations
                                1. Business Model Similarity
                                  1. Growth Stage Alignment
                                  2. Applying Multiples
                                    1. Revenue Multiples
                                      1. EBITDA Multiples
                                        1. User-Based Multiples
                                          1. Multiple Selection Criteria
                                        2. The Berkus Method
                                          1. Key Criteria
                                            1. Sound Idea
                                              1. Prototype
                                                1. Quality Management Team
                                                  1. Strategic Relationships
                                                    1. Product Rollout
                                                    2. Scoring Process
                                                      1. Criteria Evaluation
                                                        1. Value Assignment
                                                          1. Risk Adjustment
                                                            1. Final Valuation
                                                          2. Scorecard Valuation Method
                                                            1. Benchmarking Against Peers
                                                              1. Regional Comparisons
                                                                1. Industry Benchmarks
                                                                  1. Stage-Appropriate Metrics
                                                                    1. Market Conditions
                                                                    2. Adjusting for Risk Factors
                                                                      1. Management Team Quality
                                                                        1. Market Opportunity Size
                                                                          1. Product/Technology
                                                                            1. Competitive Environment
                                                                          2. Venture Capital Method
                                                                            1. Exit Value Estimation
                                                                              1. Exit Multiple Assumptions
                                                                                1. Terminal Value Calculation
                                                                                  1. Exit Timeline Projections
                                                                                    1. Market Conditions Impact
                                                                                    2. Required Return Calculations
                                                                                      1. Target Return Rates
                                                                                        1. Risk-Adjusted Returns
                                                                                          1. Portfolio Theory Application
                                                                                            1. Present Value Calculations
                                                                                      2. Understanding Equity Instruments
                                                                                        1. Common Stock
                                                                                          1. Rights and Restrictions
                                                                                            1. Dividend Rights
                                                                                              1. Liquidation Rights
                                                                                                1. Transfer Restrictions
                                                                                                  1. Information Rights
                                                                                                  2. Voting Power
                                                                                                    1. Voting Rights Structure
                                                                                                      1. Board Election Rights
                                                                                                        1. Major Decision Voting
                                                                                                          1. Protective Provisions
                                                                                                        2. Preferred Stock
                                                                                                          1. Liquidation Preferences
                                                                                                            1. Non-Participating Preferred
                                                                                                              1. Participating Preferred
                                                                                                                1. Capped Participation
                                                                                                                  1. Multiple Liquidation Preferences
                                                                                                                  2. Dividend Rights
                                                                                                                    1. Cumulative Dividends
                                                                                                                      1. Non-Cumulative Dividends
                                                                                                                        1. Dividend Rates
                                                                                                                          1. Payment Priorities
                                                                                                                        2. Convertible Notes
                                                                                                                          1. Conversion Triggers
                                                                                                                            1. Qualified Financing Events
                                                                                                                              1. Maturity Date Conversion
                                                                                                                                1. Optional Conversion
                                                                                                                                  1. Automatic Conversion
                                                                                                                                  2. Discount Rates and Valuation Caps
                                                                                                                                    1. Discount Rate Mechanics
                                                                                                                                      1. Valuation Cap Function
                                                                                                                                        1. Most Favored Nation
                                                                                                                                          1. Interest Accrual
                                                                                                                                        2. SAFE (Simple Agreement for Future Equity)
                                                                                                                                          1. Key Features
                                                                                                                                            1. No Interest or Maturity
                                                                                                                                              1. Conversion Mechanics
                                                                                                                                                1. Pro Rata Rights
                                                                                                                                                  1. Most Favored Nation
                                                                                                                                                  2. Differences from Convertible Notes
                                                                                                                                                    1. Debt vs. Equity Nature
                                                                                                                                                      1. Complexity Comparison
                                                                                                                                                        1. Investor Rights
                                                                                                                                                          1. Conversion Scenarios
                                                                                                                                                      2. Key Term Sheet Components
                                                                                                                                                        1. Economic Terms
                                                                                                                                                          1. Valuation and Price Per Share
                                                                                                                                                            1. Pre-Money Valuation
                                                                                                                                                              1. Share Price Calculation
                                                                                                                                                                1. Fully Diluted Basis
                                                                                                                                                                  1. Option Pool Impact
                                                                                                                                                                  2. Investment Amount
                                                                                                                                                                    1. Total Investment Size
                                                                                                                                                                      1. Investor Commitment
                                                                                                                                                                        1. Tranching Provisions
                                                                                                                                                                          1. Minimum Investment
                                                                                                                                                                          2. Employee Stock Option Pool
                                                                                                                                                                            1. Pool Size Determination
                                                                                                                                                                              1. Pre vs. Post-Money Pool
                                                                                                                                                                                1. Pool Expansion Rights
                                                                                                                                                                                  1. Allocation Policies
                                                                                                                                                                                  2. Liquidation Preference
                                                                                                                                                                                    1. Preference Amount
                                                                                                                                                                                      1. Participation Rights
                                                                                                                                                                                        1. Seniority Structure
                                                                                                                                                                                          1. Distribution Mechanics
                                                                                                                                                                                          2. Anti-Dilution Provisions
                                                                                                                                                                                            1. Weighted Average Protection
                                                                                                                                                                                              1. Full Ratchet Protection
                                                                                                                                                                                                1. Narrow vs. Broad-Based
                                                                                                                                                                                                  1. Carve-Out Exceptions
                                                                                                                                                                                                  2. Pro-Rata Rights
                                                                                                                                                                                                    1. Participation Rights
                                                                                                                                                                                                      1. Over-Allotment Rights
                                                                                                                                                                                                        1. Assignment Rights
                                                                                                                                                                                                          1. Exercise Procedures
                                                                                                                                                                                                        2. Control Terms
                                                                                                                                                                                                          1. Board of Directors Composition
                                                                                                                                                                                                            1. Board Size
                                                                                                                                                                                                              1. Director Designations
                                                                                                                                                                                                                1. Independent Directors
                                                                                                                                                                                                                  1. Board Committees
                                                                                                                                                                                                                  2. Protective Provisions
                                                                                                                                                                                                                    1. Major Decision Approval
                                                                                                                                                                                                                      1. Budget Approval
                                                                                                                                                                                                                        1. Strategic Decision Rights
                                                                                                                                                                                                                        2. Voting Rights
                                                                                                                                                                                                                          1. Class Voting Rights
                                                                                                                                                                                                                            1. Supermajority Requirements
                                                                                                                                                                                                                              1. Drag-Along Rights
                                                                                                                                                                                                                                1. Tag-Along Rights
                                                                                                                                                                                                                                2. Information Rights
                                                                                                                                                                                                                                  1. Financial Reporting
                                                                                                                                                                                                                                    1. Board Meeting Attendance
                                                                                                                                                                                                                                      1. Inspection Rights
                                                                                                                                                                                                                                        1. Strategic Updates

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                                                                                                                                                                                                                                  4. The Fundraising Process

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                                                                                                                                                                                                                                  6. Post-Fundraising Management