- Assignment #1:
The assignment was to compare two startups on WeFunder
Here are the metrics I evaluated the two start ups on
- Annual Contract Value or Revenues
- Burn rate(net money being spent)
- Month on Month Growth in terms of revenue
- CAC: Cost of Acquisition
- Gross Profit
- Backers of each startup: Who is backing them?
- 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
- VC Terms and Lingo- Self Assignment
Founder terms:
- 409 A Valuation: 3 rd part valuation that is necessary by US tax law in order to determine the value of the options
- 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
- Shares: Allocate the number of shares in your company vs Issued shares. Issued shares are the only ones that matter
- Liquidity Event: Ability to cash in on interest