1. Assignment #1:

The assignment was to compare two startups on WeFunder

Here are the metrics I evaluated the two start ups on

  1. Annual Contract Value or Revenues
  2. Burn rate(net money being spent)
  3. Month on Month Growth in terms of revenue
  4. CAC: Cost of Acquisition
  5. Gross Profit
  6. Backers of each startup: Who is backing them?
  7. User growth

Where I got the information to analyze the startups?

→ Balance Sheet, Income statement, and statement of cash flows

→ Details section of the campaign on WeFunder

  1. VC Terms and Lingo- Self Assignment

Founder terms:

  1. 409 A Valuation: 3 rd part valuation that is necessary by US tax law in order to determine the value of the options
  2. Pro Rata Rights: It allows the existing shareholders of a company to purchase additional shares at the market rate in the future to maintain that same % ownership they had before the financing take place
  3. Shares: Allocate the number of shares in your company vs Issued shares. Issued shares are the only ones that matter
  4. Liquidity Event: Ability to cash in on interest