Valuation used in a sentence

Valuation in a sentence as a noun

So the right way to judge them is by the valuations of the startups they've funded.

Each incubator has a single score: average valuation.

Sorting through the issues of company valuation, preferences, and similar issues takes time and can be a grueling process.

The company's valuation has more than doubled since late 2011, when investors valued the San Francisco-based company at $4 billion.

My problem with the "I'm betting on Elon" approach is that the market is clearly already betting on Elon, to the point of somewhere between 10-40x a sensible company valuation.

Thus, you will have the tax complications that attend an equity funding, including needing to price your stock and option grants based on the $1 million company valuation and the need to do 409A valuations.

However, in almost all cases involving an early stage startup, you can deal with this easily by using the alternative valuation method tied to value of assets in the company.

Not because of any performance reasons--he was pretty damn good at what he did--but because he was the highest paid person in the department and management wanted to cut costs for some kind of valuation or another.

If you buy now, you're betting on a clearly ridiculously-optimistic valuation being not quite ridiculously-optimistic enough.

Like put together this 10 page weekly update for every company in X industry, including what research analysts said about them that week, what the media has said about them, individual product sales, graphs of their stock price movements and their valuation multiples, etc.

In such cases, with institutional investors, you may still find yourself arguing about valuation in negotiating caps but the process is nowhere near as involved as it is with a typical equity round and founders with leverage can usually dispense with caps as well.

Moreover, the strings that appear in Kima's term sheet are not trivial: the valuation is based on no larger than a 5% equity pool; you give up a board seat; you give Kima a broad veto power on many of your future actions relating to fundraising and other important company matters; you agree to restrictions on how the value is shared in case you are acquired.

It also means you create tax risks and complications: if the equity round is too near the time of formation, the $.0001/sh pricing used by founders for their shares may look funny next to the much higher amount per share paid by investors, raising risks that the founders can be deemed to have received their shares at the higher valuation as potentially taxable service income; once you do an equity round, you will need to do 409A valuations in connection with doing option grants and that necessitates getting outside independent appraisals; equity rounds come with strings, including investor preferences, investor protective provisions limiting what you can do as a founder without investor approval, co-sale and first refusal rights favoring investors and concomitantly limiting founders, board seats and/or observer rights for investors, and the like.