- Venture Capital - This Week in Venture Capital - Kelly Hwang, Associate at GRP

[KKTTRR1]

thanks - clear and concise

[MadeleineCag]

these are hard issues, presented as clearly as I have seen in under an hour. Thanks.

[aseohosting]

Interesting post. I have made a twitter post about this.

[aseideman]

Great video. One thing not clear to me is why VCs try to make the option pool so big - aka "cram it into the pre money" - if in the end, they own the same percentage of the company. In the first example given, the VC gets 25% of the Co for $1MM. So who cares what the option pool is? Yes, it lowers the price per share but if the end result is the same (25% for $1MM) then what's the point?

[seekperfection]

I'm all about peak performance...constantly looking for the next edge.

[MrHastadam]

this is what happens to the guy in the movie "social network". those bitchaaz fooled the poor guy :(

[masterdeviance1985]

Surprised how upfront Mark is about the VC psychological trick of starting with 1,000,000 shares. Good stuff.

[callloop]

Great video! The # of shares really made sense. I'd rather gie away 30K shares rather than 3.

[comster]

Mark, Kelly,

Thanks for the lesson!

-J

[CharlieOFlaherty]

Another great show, thanks. It is refreshing to have so much transparency from your side of the table!

[atore]

Amazing show. Thanks so much for the spreadsheet. already put it to use :)

[Physith]

You should use a desktop video capture software when you want to show a spreadsheet instead of zooming in with the camera...

[haroutkat]

i wish i had this lesson when i first raised $500K then $1.25M and followed by a $3M round.

it would have eliminated a whole lot of the "ratcheting" and various "participating preferred" terms used by our VCs to screw me over.

Mark, your sincerity and openness is refreshing in. when it's time to raise money for my new venture i'll be knocking on your door.

ps: please get a screencast software (i.e Camtasia) so we can actually see the spreadsheet as Kelly talks us through it.

-harout

[HowardScottj]

Kelly great job. As always TWiVC delivers invaluable advise. I think you guys are doing great at changing the outsiders perception of the VC market through transparency and representing an honest broker position in your market. Keep it up! @HowieSJ

[SciPoly]

Where can I find this spreadsheet?

[pmroute]

@SciPoly - search on docstoc .com for "Venture Capital Valuation Spreadsheet "

[blur35mm]

@SciPoly

docstoc(dot)com/docs/47831420/­Venture-Capital-Valuation-Spre­adsheet

Original Blog Post:

bothsidesofthetable(dot)com/20­10/07/22/want-to-know-how-vcs-­calculate-valuation-differentl­y-from-founders/